Century Pacific saw muted ’22 earnings hike

The Po family-led canned goods giant Century Pacific Food Inc. saw 2022 profits rise 6 percent to P5 billion on robust sales and strong demand as the economy recovered from the pandemic slump.

The maker of Century Tuna and Argentina corned beef said revenues for the year grew by 14 percent to P62.2 billion.

“Century’s all-weather portfolio did much of the heavy lifting in 2022, whether from a topline or gross margin perspective. On the sales side, our affordable and accessible brands like Fresca and Lucky 7 allowed the company to serve the needs of value-seeking consumers, especially during an inflationary time,” company chief finance officer Chad Manapat said in a statement.

“We saw local demand remain resilient in a year where more Filipinos gained employment because of the reopening. We recognize that consumers had to prioritize spending and are humbled to see that they continue to patronize our brands, leading to double-digit growth,” he added.

Long-term growth

Century said sales were backed by the growth of its branded business, which is composed of its flagship marine, meat and milk products. Exports also rose 4 percent despite supply chain disruptions last year.

The company noted, however, that margins slipped by 20 basis points to 23.1 percent last year amid rising inflationary pressures.

“We have been navigating through choppy waters for quite some time but have been fortunate enough to deliver a consistent growth performance year-on-year,” Manapat said. “Our strong cash generation allows us to continuously fuel long-term growth, invest in sustainability, and provide our shareholders with satisfactory returns,” he added.

Meanwhile, Century spent P1.4 billion in capital expenditures in 2022 mainly for its coconut processing facility.

Manapat said the company was cautiously optimistic for 2023 given “persistent inflationary pressures.”

“We have some inventory overhang from 2022, which may cause bottomline to lag in the first half, but expect margin improvements as commodities ease,” he said.

“While we still see uncertainties marring the landscape, we continue to navigate and adapt to create value for our stakeholders and remain resolute in our mission to deliver affordable nutrition to Filipino families,” he added. INQ