CNPF core income grows 10% despite earthquake losses

Century Pacific Food Inc. (CNPF) posted a 14-percent increase in consolidated revenues to P70.5 billion in the first nine months of 2026, while core net income rose 10 percent despite P1.2 billion in earthquake-related losses.

“This year has been an uphill climb, marked by geopolitical uncertainties, inflationary pressures, subdued consumer sentiment, and natural calamities,” CNPF Chief Financial Officer Chad Manapat said.

He said the company’s diversified portfolio and healthy balance sheet helped it navigate market challenges while continuing to invest in long-term growth.

Third-quarter sales increased 12 percent year-on-year and 8 percent quarter-on-quarter, supported by its Branded and Original Equipment Manufacturer (OEM) Exports businesses.

The Branded segment, which accounts for most of CNPF’s sales and primarily serves the domestic market, grew 12 percent on a volume basis. Its Marine, Meat, Milk, Coconut and emerging product categories all contributed to the performance.

Meanwhile, OEM Exports sales climbed 21 percent from a low base, supported by long-term contracts and demand in key markets. Its dollar-denominated revenues also serve as a natural hedge against imported input costs.

Improved pricing and tighter spending lifted gross margin by 10 basis points to 25.6 percent, while operating expenses as a share of sales fell by 30 basis points to 13.9 percent. These gains drove a 20-percent increase in operating income before earthquake-related losses.

A magnitude 7.8 earthquake struck General Santos in June, affecting facilities where CNPF operates key production sites. Operations fully resumed by the start of the third quarter, with no permanent impairment to production capabilities. The company recognized P1.2 billion in non-recurring losses, with insurance recoveries expected in future periods.

Headline net income after tax fell 11 percent to P5.2 billion, weighed down by the earthquake impact, higher taxes following the expiration of tax incentives and increased finance costs.

CNPF allocated around P8 billion in capital expenditures for 2026, with P5 billion deployed by end-September for coconut facility expansion and new dairy and pet food facilities.

Manapat said the company aims to maintain double-digit revenue growth through consumer-focused promotions, product innovation and cost discipline, while preparing to mitigate potential El Niño impacts.