Century Pacific Food Inc. (CNPF) is preparing for potential headwinds from the escalating conflict in the Middle East, even though it sustained double-digit growth in the first quarter of the year due to consumer demand and export sales.
“We are clear-eyed that the months ahead will be marked by headwinds. The aspiration to sustain our double-digit growth momentum remains as we balance the needs of our stakeholders,” CNPF chief financial officer Chad Manapat said on Thursday.
The listed food manufacturer reported a 10 percent increase in net income after tax to P2.1 billion in the January-to-March period, while consolidated revenues climbed 15 percent year-on-year to P23 billion. Operating income likewise rose 17 percent.
Sustained demand for affordable food products
CNPF said growth was fueled by sustained demand for affordable food products in its branded business and the continued recovery of its original equipment manufacturing (OEM) export segment.
Branded revenues, which account for around 80 percent of total sales, grew 11 percent year-on-year, driven by volume-led growth, as consumers continued to favor value-for-money offerings and trusted brands amid a challenging consumer environment.
Meanwhile, OEM export sales surged 32 percent, supported by improving tuna markets and sustained global demand for coconut products.
Deeply grateful
“We are deeply grateful to be able to deliver decent results in 1Q26. It has not been an easy environment, especially for the Filipino household.”
“This is why we widened our value for money offerings, leaned into convenience, and worked to keep our products accessible during the quarter. We are humbled that in these difficult times, our consumers continue to reach for our brands,” Manapat said.
Rising input costs, however, continued to weigh on margins. Gross margin narrowed by 100 basis points to 25.1 percent, although foreign exchange gains from the company’s dollar-denominated export revenues helped cushion the impact. Operating margins still expanded by 20 basis points to 11.9 percent.
Net profit growth was likewise tempered by a higher effective tax rate of 19.4 percent, up from 15.6 percent a year earlier, following the expiration of certain tax incentives.
Continue placing long-term investments
Despite the uncertain global environment, Manapat said the company will continue placing long-term investments while cushioning the impact of volatility through tighter controls on discretionary spending, scenario-based planning, and careful pricing adjustments to balance affordability with rising costs.