CNPF Exectutive Chairman Christopher T. po

CNPF Vice Chairman, President and CEO Teodoro Alexander T. Po

Po-led food and beverage producer Century Pacific Foods Inc. (CNPF) expects to post double-digit growth in both sales and profits this year despite challenges stemming from the conflict in the Middle East.

“It’s been a quite challenging second quarter, but we are still seeing double-digit growth for our business, both on the branded and OEM [original equipment manufacturer] side. So, juxtapose that to our first-quarter numbers, where we also delivered double-digit growth, with some luck and a lot of work, we still hope to land this plane by the end of the year, delivering double-digit growth,” CNPF Executive Chairman Christopher T. Po said during the company’s annual stockholders’ meeting (ASM) on Tuesday, June 30.

He noted that the earthquake in Mindanao earlier this month disrupted canning operations for the company’s OEM business in General Santos City, causing some revenues to be deferred to the second half of the year.

“But, happy to say that we are close to be back to normal, close to full capacity utilization of our plants in General Santos and, with a lot more investment in our brands, and hopefully with the Iran war effects abating, we will still be able to make the next six months similar or even slightly better than the first six months,” Po said.

Despite the more challenging operating environment, CNPF Vice Chairman, President, and Chief Executive Officer (CEO) Teodoro T. Po said the company will maintain its planned capital expenditures (capex) of ₱8 billion to ₱9 billion this year—nearly double its typical annual capex budget—to expand production capacity across most of its product lines, many of which are already nearing full utilization.

“We stand firmly behind that capex. Our domestic demand for affordable nutrition is not a cyclical story, it’s a structural one. So, mouths are born every day in the Philippine population, and Philippine population continues to be large, young, and growing. So, as incomes rise over time, consumption rises with it, and our business benefit from this increase in consumption,” he said.

A significant portion of this year’s capex will be allocated to CNPF’s coconut business and tuna OEM export operations, which are benefiting from the stronger United States (US) dollar against the Philippine peso. US dollar-denominated revenues account for 25 percent of the company’s total sales.

Aside from coconut and tuna exports, Po said the company’s domestic businesses, including dairy, continue to post double-digit growth despite their growing scale.

CNPF is also expanding into new product categories in pet food as it scales up both its domestic and export businesses.

Po added that the company has several new products in the pipeline for launch across its meat, sardines, and coconut businesses.

“So all of these capexes are necessary and required and we expect to show the results starting next year,” Po said.