Higher prices of raw materials weigh on CNPF income

EARNINGS of Century Pacific Foods, Inc. ( CNPF) slipped in 2017, weighed down by higher prices of raw materials despite a 22% increase in revenues for the period.

In a statement issued Wednesday, CNPF said it generated a profit of P2.55 billion last year, 4% lower than what it delivered in 2016. Earnings before interest, taxation, depreciation, and amortization were also flat at P3.95 billion.

The listed food manufacturer attributed the decline to cost pressures, which it said could likely continue in the early part of this year.

“Though headwinds coming from cost pressures are likely to remain into the early part of 2018, we have already seen softening in the prices of raw materials and look forward to an improvement in margins beginning middle of this year. Meanwhile, we are focused on keeping expenses low and ensuring that our buoyant top-line growth continues,” CNPF Executive Chairman Christopher Po said in a statement.

Mr. Po also said the company is now adopting a more conservative approach toward price increases amid inflationary pressures.

The company’s top- line, meanwhile, accelerated to P34.50 billion for the period, boosted by the growth across its branded business and original equipment manufacturer (OEM) segment, which include tuna and coconut.

Shares in CNPF were unchanged at P17 each at the Philippine Stock Exchange on Wednesday. —