Century Pacific Food sustained double-digit sales growth in Q3
Century Pacific Food Inc. (CNPF), one of the leading branded food and beverage companies in the Philippines, posted a 13- percent topline growth in the third quarter of 2022 on the back of resilient domestic demand and the continued recovery of its OEM exports business.
Consolidate revenue for the first nine months of the year amounted to P47 billion, up 14 percent from the same period last year. The performance was primarily driven by the company’s branded business, which accounted for the majority of its sales.
Composed of marine, meat, milk, and other emerging businesses, the branded segment outperformed, clocking in a growth of 17 percent year-on-year for the nine-month period, demonstrating resilience in consumer demand.
The OEM tuna and coconut exports business, hindered by high shipping costs earlier in the year, has recovered, registering a growth of 5 percent in the nine-month period on top of last year’s high base driven by improving freight rates, easing supply chain pressures, and favorable movements in commodity prices.
“Volatile operating conditions and uncertainty set the scene in 2022, but these were cushioned by the Philippine economic reopening and a receding pandemic. As such, the economy continues to rebound, but Filipino families are still prioritizing their spending,” said CNPF’s chief financial officer Richard Manapat.
CNPF is home to market-leading brands and household names such as Century Tuna, 555, Argentina, and Birch Tree.
In terms of profitability, CNPF was able to sustain its year-to-date gross margin at 24.5 percent, posting a 10-basis-point increase from the comparable period last year despite elevated input prices. The increase was largely due to the favorable impact of an outperforming branded business. On a sequential basis, the company continued to see a softening in gross margins driven by the increase in prices of key raw materials and packaging quarter-on-quarter.
Year-to-date operating expenses as a percentage of sales landed at 14.1 percent, expanding by 90 basis points versus the same period last year, driven by the continued support for recently launched innovations and demand-generating activities, investments in brand-building and the organization, and higher logistics cost. The increase was partially offset by cost optimization programs undertaken by the Company.
Earnings before interest, taxes, depreciation, and amortization for the nine-month period was at P6.5 billion, with margins at 13.7 percent.
Overall, with an effective income tax rate of 17.5 percent, CNPF’s net income after tax for the period registered at P4.2 billion, posting a growth of 6 percent year-on-year.