LISTED Century Pacific Food, Inc. (CNPF) is acquiring 100% interest in Coco Harvest, Inc. as part of its ongoing expansion of its coconut processing capacity.
The acquisition and investments in facility improvements total about $40 million, CNPF said in a regulatory filing on Thursday.
According to the CNPF, acquisition and facility improvements will be financed through internally generated cash flows.
Coco Harvest owns a coconut processing facility on a six-hectare property in Misamis Occidental.
Built in 2016, the facility is equipped to manufacture high-value coconut-based products such as coconut water, coconut milk, desiccated coconut, and virgin coconut oil.
“This deal is an accretive acquisition. More importantly, it marks a significant milestone for the company. Our coconut business, encompassing both domestic and export, has grown substantially these past few years on the back of burgeoning trends in health and wellness,” CNPF President and Chief Executive Officer Teodoro Alexander T. Po said.
“The additional capacity from Coco Harvest will bolster our capability to serve rising demand, with room for expansion as the business grows,” he added.
Mr. Po said that CNPF plans further investments in expansion as the coconut business is anticipated to outgrow the facility’s current capacity.
“We are encouraged by the long-term growth trajectory of our coconut business. From where we started, it has evolved to become globally competitive in the category through the team’s commitment to excellence and innovation,” he said.
“It’s a platform where we believe we can create more value for the company as well as the local coconut farming industry,” he added.
CNPF said the capacity expansion is expected to generate more than 1,500 manufacturing jobs in Mindanao. It will also spur demand for auxiliary services needed by the plant and provide market access to coconut harvests in the region.
In March, CNPF signed a new, expanded, and long-term agreement with The Vita Coco Company, Inc., a global leader in the coconut water industry. The agreement specifies an increase in Vita Coco volume commitments of approximately 90 million liters over the next five years.
For the first half, CNPF recorded a 14% increase in its attributable net income to P3.63 billion as its consolidated revenue rose by 13% to P37.74 billion.
CNPF shares rose by 2.29% or 85 centavos to P38 per share on Thursday. — Revin Mikhael D. Ochave
