Century Pacific Food, Inc. posted a 21 percent growth in net income to P2.7 billion in first half of 2021 versus the same period last year on the back of strong export sales, resilient local demand, and favorable tax rates.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues expanded 8 percent to P27.0 billion despite the surge in sales in the comparable period last year.

“This performance was primarily driven by the double-digit growth in the Company’s OEM exports business, which was up by 29 perecnt year-on-year as a result of the continuous reopening of global markets,” CNPF said.

CNPF’s branded revenues were sustained versus last year, registering a 3 percent year-on-year growth, notwithstanding spikes in demand due to strict lockdowns imposed in the first half of 2020.

“We are grateful for this revenue growth following the surge in sales we saw last year. We see this as a reflection of organic demand, given that pantry loading hasn’t occurred in the same magnitude as 2020,” said CNPF Chief Financial Officer Chad Manapat.

Gross margins and operating expenses as a percentage of sales were maintained, thus, EBITDA registered a growth of 9 percent in the first half of 2021, tracking topline performance.

The Company also benefited 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, lowering effective income tax rates to 16 percent.

According to Manapat, profits will be reinvested in capacity expansion programs, sustainability initiatives, and upcoming innovations.

“We are pleased to share positive results for the first half of the year. That said, 2021 isn’t over yet. We remain cautiously optimistic as we navigate through the rest of the year,” Manapat said.

With another round of strict lockdowns imposed due to control the spread of COVID Delta variant, CNPF beefed up its inventory covers to ensure food security and business continuity.

“As we ease into the second half of the year, we acknowledge that we are still very much in uncertain times. We continue to monitor key risks, such as inflationary pressures and forex fluctuations, and we have plans in place to mitigate and hedge ourselves against the potential impact,” said Manapat.

He added that, “We continue to work towards double-digit growth, and we believe this will be supported by the resilient demand for essentials and consumer staples, continuous growth in our OEM exports business, and innovations underway. Taken together with the boost from CREATE, we are looking to end the year with a double-digit bottomline growth as well.”