Century Pacific Food, Inc. (CNPF), a food and beverage company controlled by the Po family, reported a 15 percent growth in unaudited net income year-on-year to P1.7 billion in the first quarter of 2024.
In a disclosure to the Philippine Stock Exchange, the firm said its consolidated revenues grew by 16 percent to P18.2 billion from the first quarter of 2023.
Bulk of the sales came from the Branded business, composed of the Marine, Meat, Milk, and other emerging segments. Amid an inflationary environment, CNPF’s Branded segment posted a 10 percent year-on-year growth rate, demonstrating a consistent growth performance.
Further improving CNPF’s topline is the recovery of its commodity-linked OEM Tuna and Coconut Exports business.
OEM saw a 49 percent year on year surge in sales on the back of lower commodity prices, fueling demand, and a lower comparable base from the same period last year. Sequentially, the business also saw a 29 percent uplift from the previous period.
“We are grateful to be able to deliver volume-led, double-digit growth, considering an operating landscape marked by consumer headwinds and soft markets,” said CNPF Chief Financial Officer Richard Manapat.
He noted that, “The all-weather business model and diversified portfolio of Century played a significant role in enabling us to deliver decent results for the period.
“On the Branded side, our offerings come in different price tiers to serve varying consumer needs. We focused on providing our consumers with affordable sources of nutrition, keeping our brands relevant during this time.
“Meanwhile, the OEM Exports business, which was challenged last year, is in recovery mode, given tailwinds in commodities.”
In terms of profitability, CNPF saw first quarter 2024 gross margin improve by 250 basis points YoY to 26.1 percent due to favorable downtrends in most of its input costs. Gains were reinvested in demand generating activities and systems and process improvements.
“We are thankful for the first quarter’s healthy momentum, which we expect to normalize and align with our full year outlook as we move forward. Uncertainties remain, especially with inflation looming over our operating landscape and dampening consumer sentiment.
“Thus, we continue to operate with cautious optimism, aiming to grow the business sustainably in the low double-digit territory as we remain resolute in our mission of providing affordable nutrition to Filipino consumers,” said Manapat.