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Century Pacific Kicks Off 2024 with 16% Revenue Growth in 1Q

OEM Exports Recover and Branded Delivers Consistent Performance Amid Inflationary Pressures Net Income increases by 15% year-on-year

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  • 1Q24 Revenues closed at Php 18.2 billion, posting 16% growth versus the same period last year.
  • OEM Exports’ recovery drove topline growth, increasing by 49% year-on-year (YoY).
  • Branded Segment delivers 10% growth YoY in the face of inflationary pressures.
  • 1Q24 Net income registered at Php 1.7 billion, expanding by 15% versus the comparable period in 2023, influenced by gross margin expansion due to favorable commodity costs and reinvestment in OPEX.

Century Pacific Food, Inc. (PSE: CNPF), one of the leading food and beverage companies in the Philippines, released its unaudited financial results for the first quarter of 2024. Consolidated revenues grew by 16% compared to the same period last year, while net income after tax for the quarter increased by 15% YoY.

CNPF’s consolidated sales for the first three months of the year amounted to Php 18.2 billion. Bulk of the sales came from the Branded business, composed of the Marine, Meat, Milk, and other emerging segments. Amid an inflationary environment, CNPF’s Branded segment posted a 10% YoY growth rate, demonstrating a consistent growth performance.

Further improving CNPF’s topline is the recovery of its commodity-linked OEM Tuna and Coconut Exports business. OEM saw a 49% YoY surge in sales on the back of lower commodity prices, fueling demand, and a lower comparable base from the same period last year. Sequentially, the business also saw a 29% uplift from the previous period.

Chad Manapat, CNPF’s Chief Financial Officer, said, “We are grateful to be able to deliver volume-led, double-digit growth, considering an operating landscape marked by consumer headwinds and soft markets. The all-weather business model and diversified portfolio of Century played a significant role in enabling us to deliver decent results for the period. On the Branded side, our offerings come in different price tiers to serve varying consumer needs. We focused on providing our consumers with affordable sources of nutrition, keeping our brands relevant during this time. Meanwhile, the OEM Exports business, which was challenged last year, is in recovery mode, given tailwinds in commodities.”

In terms of profitability, CNPF saw 1Q24 gross margin improve by 250 basis points YoY to 26.1% due to favorable downtrends in most of its input costs. Gains were reinvested in demand generating activities and systems and process improvements. As a result, Net Income After Tax landed at Php 1.7 billion, posting an increase of 15% versus the first quarter of 2023. Net profit margin stood at 9.5%, largely sustained from the same period last year.
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During the first quarter of 2024, CNPF launched its biennial flagship campaign, Century Tuna Superbods 2024: Best You Ever, an inclusive activation geared in promoting health, wellness, and fitness for everyone. Other campaigns highlighted value for money offerings in Meat and new packs in Milk emphasizing its nutritional credentials.

During the period, CNPF also announced a new expanded agreement with The Vita Coco Company, Inc., which includes additional incremental volumes amounting to approximately 90 million liters of coconut water over the next five years. CNPF will be committing USD 40 million to expand its coconut processing capacity, which will serve both its OEM and domestic coconut business with room for growth. This is expected to create 1,500 quality manufacturing jobs in Mindanao.
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Manapat concluded, “We are thankful for the first quarter’s healthy momentum, which we expect to normalize and align with our full year outlook as we move forward. Uncertainties remain, especially with inflation looming over our operating landscape and dampening consumer sentiment. Thus, we continue to operate with cautious optimism, aiming to grow the business sustainably in the low double-digit territory as we remain resolute in our mission of providing affordable nutrition to Filipino consumers.”