EARNINGS of Century Pacific Food, Inc. rose by 7% to P797.83 million in the third quarter, fueled by double-digit sales growth of its brands such as Century Tuna, 555, and Blue Bay.
In a regulatory filing, Century Pacific said revenues went up 10% to P10.15 billion during the July to September period, from P9.22 billion a year ago.
For the first nine months of the year, the listed canned food company said its net income was 7% higher year-on-year to P2.36 billion. Consolidated revenues increased by 17% to P29.47 billion, the bulk of which or 75% came from its branded business.
“Amidst the more challenging environment, branded continues to show very healthy growth. This remains driven by higher volumes — a trend we’ve been seeing for a number of quarters now,” Oscar A. Pobre, CNPF chief financial officer, was quoted as saying in a separate press release.
Branded sales surged 22% to P22 billion during the nine-month period, with P7.6 billion generated from July to September.
“Apart from improvements in distribution, we think the consistency in our branded revenue growth reflects both the nature of our products as consumer staples, as well as the strong loyalty to our brands. The broad based increase in sales, seen across both core and emerging categories, will hopefully sustain our growth pipeline for the foreseeable future,” Mr. Pobre said.
On the other hand, Century Pacific saw revenues from its original equipment manufacturer (OEM) business rise 3% to P7.5 billion as of end-September.
Mr. Pobre noted that margin compression was seen in the third quarter due to the rising costs of key raw materials, packaging, and financing.
“However, profitability metrics continue to remain stable on a year-on-year basis, despite the rising costs that most Philippine companies are currently facing,” he said.