The Philippines’ largest canned food company Century Pacific Food, Inc. (PSE: CNPF) reported net profit of Php636 million during the three months ending March 2016. This is 45% higher versus the same period last year, given strong local demand for the Company’s branded products, subdued prices of key raw materials, and the financial consolidation of newly acquired Century Pacific Agricultural Ventures, Inc (CPAVI).
Revenues were up 22%, with CNPF generating Php6.40 billion during the first three months of 2016 versus the Php5.24 billion a year before. Sales from the 3 branded businesses – marine, meat and milk – grew by 15% year-on-year and continue to account for 78% of the Company’s topline.
CNPF’s Chief Financial Officer Oscar Pobre said, “The domestic economy remains vibrant and our strong market position has allowed us to benefit from increased per capita consumption. Improved sales distribution and well-executed marketing campaigns have also helped us sustain double digit growth, enough to offset weakness in our private-label tuna export business where the global situation remains challenged.”
The Company’s first quarter operating income and earnings before interest, depreciation and amortization amounted to Php860 million and Php934 million, up by 40% and 43% respectively.
“We have built-up good momentum in sales volume growth, plus subdued raw material prices and hedging strategies have also allowed us to continue our program of investing in our brands. These include holding the trademark Century Tuna Superbods event, launching the new Swift Premium Corned Beef, as well as engaging in various marketing campaigns for 555 Carne Norte and Angel Evaporated Milk,” added Pobre.
CNPF’s non-branded segment also saw a boost with the consolidation of CPAVI, which has benefited from the rising global trend towards healthy and organic coconut products.
In addition, the Company notes improved sales mix and increased contribution from higher margin products, indicating consumer willingness to pay for more premium items. CNPF also cited strong sales performance coming from modern retail chains as well as convenience stores, which have expanded quickly across the country.