Century Pacific Food Inc. (CNPF) booked 11 percent higher net income in 2019, to P3.1 billion from P2.8 billion in 2018, on the back of revenue growth driven by its branded business.
The listed food and beverage firm said consolidated revenues rose 7 percent last year to P40.6 billion as its branded business — composed of the marine, meat and milk business units — grew 12 percent year-on-year to a topline of P31.2 billion, accounting for 77 percent of overall revenues.
Meanwhile, CNPF said the commodity-linked tuna and coconut original equipment manufacturing (OEM) business, the revenues of which account for the balance of 23 percent, saw 6 percent lower sales on the back of lower commodity prices.
CNPF said overall the company’s profitability benefitted from favorable commodity price trends as consolidated gross profit jump 20 percent, translating to a 250-basis point increase in overall gross profit margin, to 24 percent.
The company said the growth likewise led it to invest more heavily in brands and new product development and innovations, resulting to a 13 percent climb in operating expenses.
CNPF’s net gearing stood at 0.2 times, with net interest-bearing debt to earnings before interest, taxes, depreciation and amortization stood at 0.7x times Return on equity was steady at 18 percent.
CNPF’s portfolio of brands includes well-known Century Tuna, Argentina, 555, Angel and Birch Tree.
It assured the continued supply of its products amid heightened demand prompted by the enhanced community quarantine in Luzon put in place to stop the spread of COVID-19.
“In these challenging times, we recognize the critical role we play in ensuring enough of our products are available to those who need them the most. Thanks to the support of the Department of Trade & Industry and the Inter Agency Task Force, we are able to maintain a smooth flow of goods and operate with enough capacity, despite the use of a skeleton workforce,” CNPF chief finance officer Oscar Pobre said in a regulatory filing.
“We will continue working closely with the government to ensure unhampered operations of our Company and our supply chain partners. We also remain in close touch with partner local government units for the supply and donation of various food products. Finally, the health, safety, and financial protection of our employees remain paramount and we continue to provide them with care and financial aid.
The company vowed to distribute a million food packs to Filipinos nationwide, particularly in communities severely impacted by the pandemic. Additionally, it said it has earmarked financial support for its employees, communities and various institutions.