Strong staples drive CNPF’s P5.8B profit

Listed food and beverage company Century Pacific Food, Inc. (CNPF) sustained its growth momentum through the first nine months of the year, with net income climbing 10 percent to P5.8 billion as stronger branded sales and a recovering export business helped offset margin pressures.

The food manufacturer behind Century Tuna and Argentina products booked P61.8 billion in consolidated revenues during the period, up 8 percent year on year. 

In its Thursday stock exchange disclosure on Thursday, the company also said gross margin stood at 25.5 percent, narrowing by 110 basis points due to normalizing input costs, but tighter cost controls helped cushion the impact. 

Operating expenses, on the other hand, fell by 90 basis points as a share of sales, slightly lifting net profit margin to 9.4 percent.

“The Group’s performance can be attributed to the company’s all-weather portfolio, with both domestic and international legs. Certain domestic macroeconomic factors are supporting our volume-led growth, especially for a food company like ours that plays in staples,” CNPF Chief Financial Officer Chad Manapat said.

“Stabilizing inflation, particularly lower rice prices, has somewhat improved purchasing power, which in turn increased demand. That’s half the battle; the other half is ensuring our brands continuously support consumers by providing more affordable, convenient, and healthier choices,” he added.

CNPF said it continued to strengthen its portfolio with strategic investments. In the third quarter, it acquired Loma Linda, a 130-year-old American heritage brand specializing in plant-based alternatives.

The company also expanded its coconut operations with the acquisition of a processing facility in Tupi, South Cotabato, expected to create more than 800 manufacturing jobs in Mindanao. 

In total, CNPF now has three coconut processing hubs in the country, including those in General Santos and Misamis Occidental.