PHILIPPINES: Canned food company Century Pacific Food, Inc. (CNPF) reported its consolidated net income had grown 10 per cent year-on-year in the first three months of 2017, driven by the performance of its core business.
CNPF’s profits during the period reached PHP 701 million (USD 14 million), led by continued revenue growth across all business units and cost management initiatives.
Its total revenues went up 17 per cent to PHP 7.48 billion (USD 149 million) during the analysed three-month period, supported by the strong performance of its exports and a healthy increase in the company’s branded sales.
The Company has developed a roster of household names, which include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk, and Birch Tree Powder Milk.
“This quarter’s top line performance attests to the success of our strategy of diversifying the business between branded and OEM (original equipment manufacturer), domestic and international. This approach is serving us well, especially in the current environment of rising input costs and a weaker peso,” pointed out CNPF’s Chief Finance Officer Oscar Pobre.
CNPF’s OEM segment experienced revenues increase by more than 40 per cent, owing to the continued recovery in the tuna export market which began during the second half of last year.
“We are seeing more muted, but nonetheless healthy growth in the branded side considering the high base last year brought about by election-related spending,” Pobre added.
In terms of profitability, CNPF’s gross profit increased by 8 per cent while operating income grew faster at 11 per cent year-on-year as various cost saving initiatives bear fruit.
The company’s gross profit and operating margins were at 28 per cent and 13 per cent, respectively, despite higher commodity prices and weaker domestic currency.
In late 2016, CNPF acquired the license to the Kamayan trademark for North America, one of the top names for shrimp paste – a popular condiment in Philippine cuisine and the Company also acquired distribution companies in China which sell Century Tuna, currently the number one canned tuna brand in China.
The firm's Board stressed that these acquisitions are expected to support the growth of the Company’s branded businesses, as well as expand its presence into adjacent shelfstable categories.