The Po family’s Century Pacific Food Inc. (CNFP), one of the leading branded food and beverage companies in the Philippines, reported a 12 percent growth in net income to P5.6 billion last year despite the inflationary environment. 

In a disclosure to the Philippine Stock Exchange (PSE), the firm said its consolidated sales improved by eight percent to P67.1 billion – delivering growth atop a challenging base. 

CNPF said it has been demonstrating consistent revenue growth for the past five years with a compounded annual growth rate of 13 percent. In 2022, revenues increased by 14 percent year-on-year. 

The firm said its 2023 topline performance was fueled by the performance of Branded business, outweighing the softness of the Original Equipment Manufacturer (OEM) Exports segment. 

The Branded segment is the primary growth driver of CNPF, comprising the majority of the group’s sales. It is composed of marine, meat, milk, and other emerging segments, such as pet food, coconut, refrigerated food, and plant-based alternatives. 

Last year, CNPF’s Branded segment posted an increase of 11 percent, following a robust 16 percent growth from the year before. Branded sales were boosted by the faster-growing milk and other emerging segments and the steady performance of core marine and meat segments. 

“The Branded business continued to exhibit resilience amidst a volatile macroeconomic environment. Our primary focus is on delivering affordable nutrition through our vast assortment of brands and products spanning multiple price tiers – our way of providing value to our consumers in both good and challenging times,” said CNPF Chief Financial Officer Richard S. Manapat.

Meanwhile, CNPF’s commodity-linked OEM tuna and coconut exports segment saw a softening in 2023, as it declined by 4 percent year-on-year (YoY), impeded by supply chain challenges and elevated commodity costs, which in turn led to softer markets. 

Nonetheless, the segment saw an upswing in the last quarter of 2023, increasing by 18 percent versus the same period last year, supported by favorable trends in commodities and a low comparable base.

In terms of profitability, CNPF’s gross margin landed at 24 percent, improving by 95 basis points year-on-year, on the back of downtrends in most of its input costs, especially towards the second half of the year.

Gross margin expansion, coupled with efficient operating expenses management, led earnings before interest, taxes, depreciation, and amortization (EBITDA) to increase by 15 percent YoY to P8.7 billion. EBITDA margin likewise posted an 80-basis point improvement to 13.0 percent. 

“On the whole, we are pleased to deliver consistent and profitable growth despite operating in a volatile environment in 2023. We attribute this to the all-weather nature of our business model, diversified portfolio, and prudent usage of our resources,” said Manapat. 

He noted that “we ended the year on solid footing, putting us in a good position to reinvest in growth and sustainability as well as to provide our shareholders with a healthy return on their investment.” 

“We are only in the early days of 2024. While the road ahead is still clouded with uncertainty, Century Pacific remains committed to grow in the low double-digit territory for both top and bottomline. 

“We plan to reinvest gains from improving commodities into growth and expansion, as we continue to focus on affordability and providing better, healthier food options to Filipino consumers,” Manapat concluded.