CENTURY Pacific Food, Inc.’s net income climbed by 6% to P5 billion in 2022 after the food and beverage manufacturer recorded higher revenues driven by the company’s branded segment.
“On the profitability side, because of the branded segment’s outperformance, we saw a favorable mix impact, which allowed us to sustain gross margins in 2022,” Century Pacific Food Chief Financial Officer Richard Kristoffer S. Manapat said in a press release on Tuesday.
The company said that net income for the year was impacted by higher costs of products due to “inflationary pressures.”
It reported that its topline grew by 14% to P62.2 billion driven by the performance of its branded business, which is composed of marine, meat, milk, and other emerging businesses. The business segment grew by 16% in 2022.
“Our affordable and accessible brands like Fresca and Lucky 7 allowed the company to serve the needs of value-seeking consumers, especially during an inflationary time,” said Mr. Manapat.
Mr. Manapat said local demand remained resilient as more jobs were reported due to the economy’s reopening in the previous year.
Operating expenses also increased by 14% driven by higher logistics costs. Earnings before interest, taxes, depreciation, and amortization rose by 6%, the company said, without giving comparative figures.
Century Pacific Food’s original equipment manufacturer (OEM) exports business grew 4% from its high base reported a year prior.
“Despite a slow start, the exports business saw improvements in the second half of 2022 due to favorable movements in freight rates, forex, and commodities,” the company said.
Century Pacific Food allocated P1.4 billion in capital expenditures for 2022, which it used to complete a 50% expansion of its coconut OEM facility.
The company also acquired the asset and intellectual property of the canned food company behind the Ligo brand.
“We approach 2023 with cautious optimism focused on delivering top-line and bottom-line growth but cognizant of our consumers’ plight, considering persistent inflationary pressures,” Mr. Manapat said.
On Tuesday, shares in Century Pacific Food fell by 1.8% or 45 centavos to end at P24.50 apiece. — Adrian H. Halili