CNPF profit rise 10% in Q1
Century Pacific Food, Inc. reported a 10 percent improvement in consolidated earnings to P1.4 billion in the first quarter of the year as consolidated net revenues also grew 10 percent to P14.7 billion.
In a disclosure to the Philippine Stock Exchange, the firm said the growth was mainly due to the outperformance of its Branded segment, which contributed 82 percent to CNPF’s topline.
The sales of the Branded segment, which is composed of Marine, Meat, Milk and other emerging businesses, clocked in a growth of 17 percent year-on-year as domestic demand for affordable and shelf-stable consumer goods remained resilient for the quarter.
“The first quarter of 2022 has received more than its fair share of headwinds, yet, concurrently, we are feeling tailwinds coming from the Philippine economic reopening,” said CNP Chief Finance Officer Richard Manapat.
He added that, “Consumers are feeling the impact of rising commodity prices but, compared to the height of the pandemic, have more disposable income. They continue to gravitate toward essential goods and value for money brands, underpinning the demand for Century products.”
Meanwhile, despite healthy organic demand for its products, CNPF’s Tuna and Coconut Original Equipment Manufacturer (OEM) Exports business contracted by 13 percent year-on-year due to soaring freight rates from Asia to the West and limited container availability and coming from a high base in 2021.
In terms of profitability, CNPF saw gross margins contract by 30bps to 25.9 percent due to the global rise in commodity prices but operating expenses as a percentage of sales declined by 90bps.
“We are grateful for the continued resilience that the Company is demonstrating. We have seen two consecutive years of extraordinary performance and kickstarted 2022 with healthy business results,” Manapat said.
He noted that, “This puts us in a good position to power through what we expect to be a volatile year, especially with respect to rising input prices.”
“Nonetheless, we, at Century Pacific, are intent on pursuing long-term growth initiatives by continuously strengthening our core Marine and Meat businesses and investing in the growth of our emerging businesses, specifically recently launched innovations,” Manapat said.