Century Pacific Food, Inc. (CNPF) grew its net profit by nine percent to P3 billion in the first half of the year as it managed to increase its margins despite rising inflation.
In a disclosure to the Philippine Stock Exchange, CNPF reported a 15 percent growth in consolidated revenues to P31.1 billion for the first six months of 2022 versus the same period last year.
This was driven primarily by the robust performance of its branded business, which saw a year-on-year 18 percent increase in the first half and a 19 percent growth in the second quarter.
In terms of profitability, despite increasing input prices, CNPF’s gross margins held at 25.1 percent, expanding by 20 basis points in the first half. This can be attributed to a favorable mix impact, as the Branded business outpaced OEM Exports.
Operating expenses as a percentage of sales was at 14.0 percent in the first half of 2022, increasing by 100 basis points due to higher logistics costs, continuous investment in recently launched innovations, and support for demand amidst rising input prices.
As a result, Earnings before interest, taxes, depreciation, and amortization (EBITDA) was at P4.4 billion, up by 12 percent in the first half of 2022 versus the same period last year. EBITDA margin landed at 14.2 percent.
CNPF’s Branded business, which comprises the majority of its topline, is composed of Marine, Meat, Milk, and other Emerging segments, catering primarily to the domestic Philippine market.
In particular, in the first half of 2022, the Company saw a resurgence in the performance of its Milk business. Its core segments, Marine and Meat, likewise saw strong mid-teens growth for the period.
On the other hand, CNPF’s Tuna and Coconut OEM Exports business rebounded as the first half drew to a close, growing by 6 percent year-on-year on the back of favorable commodity prices and forex rates and the easing of supply chain pressures.