Century Pacific Food Inc. (CNPF), one of the Philippines’ leading branded food and beverage companies, reported a 21 percent improvement in net income to P4 billion for the first nine months of 2021 despite “cost pressures.”
In a disclosure to the Philippine Stock Exchange, the firm said net income in the third quarter of this year was up 22 percent, driven by double-digit sales growth and favorable tax rates.
Consolidated revenues grew 12 percent to P41.1 billion in the first nine months of the year while third quarter sales gain momentum as the Branded segment picks up the pace with a 13 percent growth versus the same period last year.
The Branded business -- comprising the majority of CNPF’s revenues -- continues to be driven by the resilience in demand for consumer staples.
CNPF’s OEM Exports business continues to see a surge in sales, posting a growth of 49 percent for the third quarter versus prior year and 20 percent quarter-on-quarter. The company attributes this growth to the faster reopening of global markets.
“Consumer sentiment has been impacted by the ongoing pandemic. Thus, they continue to prioritize consumer staples and affordable goods. As a result, our core segments and value-for-money portfolio are demonstrating robust performance,” said CNPF Chief Financial Officer Richard Manapat.
He added that, “Shifts in consumer behavior are proving sticky. Consumers continue to cook and dine at home, gravitating towards market leaders and trusted brands.”
“All these are favorable to our business, given the essentials and staples nature of our portfolio and market-leading positions. Improving customer service level is also behind these topline results,” Manapat noted.
CNPF said its year-to-date gross margin stands at 24.4 percent, softening, as expected, by 130bps versus the comparable period last year due to the general rise in input prices globally.
The firm continues to benefit from favorable tax rates due to the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and an income tax holiday on its new tuna plant.
Year-to-date effective tax rates are at 16.1 percent, down by 710 bps versus that same period last year.
“Overall, we are pleased with the results of the past nine months. Despite the challenges this year, we have been able to post a healthy bottomline, giving us room to reinvest in innovations and capacity expansion, which will, in turn, generate quality manufacturing jobs,” said Manapat.