Century Pacific Food, Inc., one of the Philippines’ leading branded food and beverage companies, reported a 20 percent growth in unaudited net income to P4.7 billion last year on the back of a robust topline performance and favorable income tax rates.
In a disclosure to the Philippine Stock Exchange, the firm said unaudited consolidated revenues continue to reach highs with sales landing at P54.7 billion, clocking in a growth of 13 percent in spite of an extraordinary performance back in 2020.
“We’ve been graced with two consecutive years of extraordinary performance, receiving our fair share of silver linings along the way,” said CNPF Executive Chairman Christopher Po.
He noted that, “Despite operating in a hectic and stressful environment, the company has demonstrated resilience largely due to the essentials and staples nature of our portfolio.”
Entering 2022, CNPF started off the year at a favorable pace. The Company saw first quarter revenue growth at high single-digit, fueled by the Branded segment which grew double-digit year-on-year.
Po said 2022 is shaping up to be another challenging year with pandemic disruptions and geopolitical events resulting in a high-inflation environment.
“We continued to see strong revenue growth in the first quarter but significant uncertainty lies ahead. We will continue to play the long game and invest in the business. At the same time, our team has plans in place to mitigate the new risks that emerged and still aim to deliver decent business results,” he added.
CNPF said it continued to accelerate in the fourth quarter, registering double-digit growth for both topline and bottomline. Sales increased by 18 percent while bottomline grew by 14 percent during the fourth quarter of 2021.
“The Company’s back-to-back performance was primarily driven by the robust sales of CNPF’s Tuna and Coconut OEM exports business and the strong performance of the Branded segment... despite the high base from the year before,” CNPF said.
OEM exports increased by 29 percent year-on-year, which CNPF attributes to the global economic reopening and higher demand for healthier products.
The Company’s Branded segment, on the other hand, hit P42.8 billion revenues and registered a double-digit growth of 10 percent, notwithstanding the extraordinary results the segment posted in 2020 due pandemic-related spikes in demand.
Gross margin dipped by 1.4 percentage points due to the general rise in input prices globally. With operating expenses flattish, earnings before interest, taxes and depreciation (EBITDA) grew by 10 percent, resulting in an EBITDA margin of 13 percent.
“Demand for consumer staples remained resilient in 2021. Consumers are feeling the strain from this prolonged pandemic, leading them to prioritize spending and predisposing them to gravitate towards essentials and value for money brands,” said CNPF’s Chief Finance Officer Chad Manapat.
He added that, “As a company focused on providing affordable food options, Century was able to cater to their needs, which in turn led to market share gains for our brands.”
“Amidst a challenging macroeconomic environment, we are pleased to keep our strong growth momentum in 2021. Apart from the healthy operational performance, the Company has likewise benefitted from favorable tax rates due to the implementation of the Corporate Recovery and Tax Incentives for Enterprises Act, allowing us to reinvest in growth and sustainability programs,” noted Manapat.