PHILIPPINES: Canned food producer Century Pacific Food Inc. (CNPF) experienced an 8-per cent year-on-year growth in the first semester net profit, which reached PHP 1.47 billion (USD 2.91 million). Besides, it improved its branded food business and saw a strong recovery in exports.
The firm's generated total consolidated revenues hit PHP 16.05 billion (USD 3.18 million) for the first half, representing an increase of 23 per cent from the same period last year, Inquirer Net informed.
The branded food business registered a 13-per cent increase in revenues, to PHP 11.5 billion (USD 2.2 million), while export of white-labelled products to offshore original equipment manufacturers grew by more than 60 per cent, to PHP 4.5 billion (USD 8.9 million).
“The favorable topline performance was driven both by increases in sales volume and higher average selling prices across all business units. Locally, consumption has remained resilient amidst more muted growth rates compared to the election period last year. We are however happy to see that growth has picked up sequentially and that our second quarter revenues have increased relative to the first,” CNPF chief finance officer Oscar Pobre said.
Official statistics reveal that the company is behind local household brands like Century Tuna, Argentina, 555, Angel and Birch Tree.
For the second quarter alone, CNPF posted PHP 6.01 billion (USD 1.19 million) in revenues from the branded food business, representing a 16 per cent growth versus last year and 9 per cent increase versus the first quarter of 2017.
In the analysed period, the original equipment manufacturers business grew by 81 year-on-year.
“We faced a relatively tough first half in terms of elevated raw material prices. These are likely to persist for the balance of 2017 and margins will continue to be under pressure in the second half. However, we are still aiming to achieve earnings growth for the year with net income supported by continued top line growth, controls on our expenses, and various operating efficiencies,” said Pobre.
“Moreover, our longer-term focus remains on strengthening our brands, growing our categories, and delivering value to both our consumers and other stakeholders,” he added.
CNPF also continued to pursue various inorganic growth opportunities with the acquisition last May of the Philippine license for Hunt’s. This followed the company’s acquisition of the license to the Kamayan trademark for North America and various distribution companies in China late last year.