Century Pacific Food Inc. of the Po family, one of the leading branded food companies in the Philippines, posted a 14 percent improvement in net income to P5.3 billion in the first nine months of 2024 from P4.6 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange (PSE), the company said profits grew in line with sales, with gross margin improvements reinvested in operating expenditures to drive topline growth.
CNPF generated P56.9 billion in consolidated sales, up by 13 percent compared to the P50.5 billion in the same period last year, due to the outperformance of the OEM Exports business and continued resilience in the Branded segment.
Third quarter sales likewise increased by 13 percent, while net income rose by 15 percent, a close reflection of its year-to-date performance.
A majority of CNPF’s revenues stem from the Branded business – composed of Marine, Meat, and Milk and Other Emerging segments.
Amid a soft consumer environment, the business continued to post sustained growth, supported by a diverse portfolio of brands spanning progressive price tiers.
Meanwhile, the OEM Exports business, captures both the Tuna and Coconut exports. Coming from a soft 2023, the segment saw an upswing in 2024 as commodity prices and forex trended favorably compared to the same period the year before.
“We are grateful to be able to deliver consistent, volume-led growth for the first nine months of 2024. Our operating landscape faced multiple crosswinds—from inflationary pressures straining domestic demand to improving commodities aiding exports recovery,” said CNPF Chief Financial Officer Richard Manapat.
He added that “this performance reflects the resilience of CNPF’s all-weather, diversified business model, which enables us to adapt to varying market conditions."
Manapat noted that the company had more elbow room to support consumer demand thanks to gross margin gains. For the nine-month period, gross margins expanded by 240 basis points (bps) to 26.6 percent as input costs improved.
Gains were reinvested into operating expenses to fund demand-generating activities, brand-building programs, innovations and sustainability initiatives.
“As the year nears its conclusion, we remain committed to executing the plans and finishing strong in the fourth quarter of 2024,” said Manapat.
He added that “we affirm our low to mid-teens growth outlook for both revenues and profits this year. With 2025 on the horizon, we are in the midst of planning to ensure that we deliver growth at a sustainable pace."
“We approach 2025 with cautious optimism as macroeconomic conditions improve and look forward to unlocking new opportunities – all in line with our mission of providing affordable nutrition to our consumers," he also said.