LISTED food and beverage manufacturer Century Pacific Food, Inc. (CNPF) reported a 4% increase in second-quarter (Q2) net income to P1.99 billion from P1.91 billion a year earlier, driven by stronger performance in its branded segment.
Revenue increased by 1% to P19.78 billion as sales of the branded segment rose by 6%, CNPF said in a regulatory filing on Wednesday.
First-half net income rose by 7% to P3.9 billion driven by the growth of its branded segment. Revenue for the January-to-June period went up by 5% to P39.7 billion.
Sales of the branded business saw a 9% increase led by double-digit volume growth. The business, which accounts for majority of the company’s revenue, is composed of marine, meat, milk, and other emerging segments.
“Our double-digit volume growth in branded reflects the company’s deliberate and sustained efforts in brand building, pricing measures, and sales generation undertaken since last year. While easing inflation, particularly that of rice, provided some lift, consumers remain value-conscious, and demand for affordable offerings continues to be strong,” CNPF Chief Financial Officer Richard Kristoffer S. Manapat said.
However, sales of CNPF’s original equipment manufacturing (OEM) exports business dropped by 10% due to normalizing commodity movements and a tepid export market amidst geopolitical uncertainty.
CNPF invested P1.5 billion in capital expenditures, mostly for capital expansion to support the company’s growth and sustainability initiatives.
“We continue to invest in the business with a long-term perspective, mindful of creating sustainable growth while delivering healthy returns to our shareholders,” Mr. Manapat said.
Meanwhile, Mr. Manapat said that CNPF is targeting a high single to low double-digit growth in revenue and income this year, supported by a resilient branded business and planned acceleration in the second half.
“In the nearer term, we are navigating the year with care as we prepare to accelerate in the second half. We are aiming to deliver high single to low double-digit topline and bottomline growth for 2025, supported by a resilient branded business,” he said.
“Our ambition is to grow at approximately twice the pace of gross domestic product each year, anchored on our mission to make affordable nutrition accessible to more consumers,” he added.
CNPF previously renewed its long-term contract with The Vita Coco Company, Inc. for approximately P14 billion. The contract, spanning five years, is expected to commence in January next year, supporting approximately 4,500 jobs in General Santos, Mindanao.
The company’s US subsidiary Century Pacific North America, Inc. also recently acquired Loma Linda from Atlantic Natural Foods, Inc. for under $10 million as part of expanding its plant-based business.
CNPF shares dropped by 2.86% or P1 to P34 apiece on Wednesday. — Revin Mikhael D. Ochave
