Century Pacific Food Inc., the domestic food cannery led by the Po family, is maintaining its double-digit growth target for the year as robust demand for its branded staples and recovery in exports helped offset inflationary pressures fueled by Middle East volatility.

Century Pacific reported a 10 percent increase in net income to ₱2.1 billion for the first quarter. Consolidated revenues climbed 15 percent to ₱23 billion compared to the same period last year, while operating income rose 17 percent, largely tracking sales growth.

Richard Manapat, Century Pacific chief financial officer, said the company is “clear-eyed” regarding the headwinds posed by geopolitical conflicts, which have complicated the global inflationary environment.

“With the ongoing conflict in the Middle East, we are clear-eyed that the months ahead will be marked by headwinds. The aspiration to sustain our double-digit growth momentum remains as we balance the needs of our stakeholders,” Manapat said.

To navigate the uncertainty, the company is implementing a “multi-scenario playbook” that includes aggressive cuts to discretionary spending and strategic pricing adjustments to protect margins without alienating its core consumer base.

The branded segment, which accounts for roughly 80 percent of total revenue and includes household names in the marine, meat, and milk categories, saw an 11 percent increase in sales.

Century Pacific attributed this performance to a “volume-led” momentum, as Filipino consumers prioritized value-for-money goods and trusted brands in a tightening economy. To capture this demand, the firm has expanded its "value segment" to ensure product availability across multiple price points.

The company’s export business, which operates under original equipment manufacturing (OEM) contracts for tuna and coconut products, saw a 32 percent surge in revenue. This marked a sharp recovery from a low base in 2025, buoyed by stabilizing global tuna markets and a steady appetite for coconut-based exports.

Financially, Century Pacific utilized its dollar-denominated export earnings as a natural hedge against rising input costs.

While gross margins contracted by 100 basis points to 25.1 percent, the impact was mitigated by favorable foreign exchange gains. These gains helped expand “other income” by 110 basis points as a percentage of sales. Coupled with disciplined operating expenses, operating margins managed to tick up by 20 basis points to 11.9 percent.

However, the bottom line felt the impact of a higher tax environment. The effective tax rate jumped to 19.4 percent from 15.6 percent a year ago due to the expiration of certain tax incentives. This resulted in net profit margins softening by 40 basis points to 9.1 percent.

Despite these fiscal shifts, Manapat reiterated the company’s commitment to investing in technology and supply chain capacity to capture long-term opportunities. (James A. Loyola)