Century Pacific nets P718M in 1st half of 2014

Screengrab from www.centurypacific.com.ph

MANILA, Philippines–Leading canned food manufacturer Century Pacific Food Inc. (CNPF) chalked up a net profit of P718 million in the first six months, seen on track to hit its P1.5 billion full-year profit target.

No pro-forma comparative level was given year-on-year as this was the company’s first semester of financial reporting under a new corporate set-up.

“Our six-month net income already approximates the full year 2013 figure. We are definitely on track towards hitting our P1.5 billion target for this year,” CNPF chief finance officer Oscar Pobre said in a press statement Monday.

The company said the six-month earnings were fueled by strong demand for its products and favorable raw materials costs. Revenues for the semester amounted to P9.6 billion. Higher sales volumes were attributed by the company to various marketing campaigns.

For the second quarter alone, CNPF’s net profit amounted to P398 million compared to the P320 million level in the first quarter. Revenues also rose by 14 percent quarter-on-quarter.

CNPF, the company behind leading brands such as Century Tuna, 555, Swift, Argentina and Birch Tree, is expected to double its net income this year from the P744 million reported in 2013.

“The company also has a very strong balance sheet, with total assets of P9.5 billion, equity of P5.9 billion, and zero debt,” Pobre said.

During the second quarter, CNPF said it halved first quarter financing costs as it partially used proceeds from an initial public offering held last May 2014 to settle all interest-bearing loans.

On its stock debut, CNPF raised P3.16 billion in fresh capital from the sale of 230 million shares at P13.75 per share. Last April 30, the private equity arm of Singaporean sovereign wealth fund GIC partnered with CNPF’s parent company by providing a loan exchangeable to 11 percent of the issued and outstanding shares of CNPF.