CENTURY Pacific Food, Inc. (CNPF) said its net income grew 13% to P897.85 million in the third quarter as it was able to sustain the growth in sales of its branded food products.
In a regulatory filing yesterday, the listed canned goods manufacturer said its consolidated revenues during the quarter accelerated 10% to P10.75 billion. Costs during the period increased 5% to P8.01 billion.
Year to date, the company’s net income increased 9% to P2.59 billion as consolidated revenues grew 7% to P30.36 billion
CNPF traced the improvement in its performance to its branded business, which recorded a 12% growth in sales during the third quarter and the nine-month period. This segment, which represents 77% of the company’s revenues, are sales from CNPF’s marine, meat and milk products such as Century Tuna, Argentina and Birch Tree.
The company’s original equipment manufacturer exports, which comprise the remaining 23% of revenues, fell 6% during the nine months. The company said it was due to the subdued pricing of tuna and coconut commodities during the period.
Costs of the company during the nine-month period inched 5% to P22.96 billion. It said it benefited from the lower prices of tuna, which is a main raw material in its some of its branded products.
“We are pleased to see pickup in demand during the third quarter, in line with improving consumer sentiment across the Philippines,” CNPF Chief Finance Officer Oscar A. Pobre was quoted as saying in a statement.
“As we approach the end of 2019, we look forward to closing the year with double-digit growth, specifically in our branded business, and are now working hard to sustain the positive momentum into 2020,” he added.
CNPF handles brands such as Century Tuna, 555, Blue Bay, Fresca, Argentina, Swift, Wow, Lucky 7, Angel, Birch Tree, Kaffe de Oro and Home Pride. Mr. Pobre said the strong brand recall of its products, coupled with the company’s wide distribution network, helps CNPF benefit from the increasing consumer spending in the country.
“So far, we have benefitted from lower raw materials prices and subdued inflation, expanding operating margins across most of our portfolio,” he said. “[W]e have been building out a robust innovation pipeline, as well as strengthening our brands, to support growth moving forward.”
Shares in CNPF traded flat in the stock market on Tuesday, closing at P15.10 apiece. — Denise A. Valdez
