Po-led Century Pacific Food Inc. (CNPF) reported a six-percent growth in net income to ₱4.1 billion for the first half of 2026 from ₱3.9 billion in the same period last year, as higher margins offset higher expenses, finance costs, and the impact of earthquake damage.

In a disclosure to the Philippine Stock Exchange (PSE) on Thursday, Aug. 6, CNPF said its gross margin stood at 25.9 percent, expanding by 20 basis points (bps) from the same period last year.

This offset the 20-bp increase in operating expenses (opex) as a percentage of sales, leading operating income to increase by 15 percent versus the same period last year, in lockstep with topline growth.

During the period, the company saw an increase in finance costs and its effective tax rate due to a moderate uptick in short-term debt and the expiration of tax incentives.

CNPF recognized one-off items during the period resulting from the impact of the earthquake that hit General Santos City, where key manufacturing hubs are located, in June.

Excluding the impact of the earthquake, core operating income growth registered at 18 percent in the first half of 2026, while core net income after tax grew by 10 percent year-on-year.

These non-recurring provisions for damaged inventory and facilities are still subject to insurance claims, with timing differences in recognition.

Amid an increasingly volatile environment, CNPF was able to sustain its growth momentum, delivering a 15-percent growth in consolidated revenues to ₱45.8 billion. The firm said its dual-engine portfolio—branded and original equipment manufacturer (OEM) exports—grew by double digits on both fronts.

A majority of CNPF’s sales come from its predominantly domestic branded business, comprising marine, meat, milk, coconut, and other emerging segments. Despite a soft consumer landscape, the branded business remained resilient, supported by the relevance of its diverse portfolio of affordable staples.

During the second quarter, the segment accelerated, increasing by 14 percent versus the same period last year and lifting first-half growth to 13 percent. Sales improvements were seen across all branded subsegments, with the milk, coconut, and other emerging businesses leading the charge.

OEM tuna and coconut exports continued their recovery from a challenging first half of 2025. In the first half of this year, the segment grew 26 percent year-on-year on the back of improving tuna export markets and robust global demand for healthy coconut products.

However, the segment’s second-quarter performance was dampened by the June earthquake that hit General Santos, where key manufacturing facilities are located, resulting in a 21-percent year-on-year growth.

“Our operating conditions in the first half were far from smooth. Fuel prices soared, squeezing our consumers while adding pressure to our operating costs,” said CNPF Chief Financial Officer (CFO) Richard S. Manapat.

He explained, “Against this backdrop, cost discipline became all the more important. We proactively tightened spending while also rolling out measured pricing action well below inflation, aiming to strike a balance between cushioning rising costs and keeping our goods within reach for our consumers.”

“At Century Pacific, the aspiration to sustain our momentum in the double-digit growth territory remains. As headwinds persist, we are focused on navigating the year as smoothly as possible, while remaining steadfast in pursuing long-term growth opportunities,” Manapat added.

CNPF’s near-term priorities include shoring up inventory for food security and business continuity, keeping a tight rein on spending, and strengthening its value-for-money offerings for consumers.

At the same time, investment in capacity expansion continues across all of the company’s businesses. CNPF has earmarked approximately ₱8 billion for capital expenditure (capex) this year, double its typical annual investment, reflecting confidence in the company’s growth prospects. - James A. Loyola