CNPF resumes growth path with R732-M profit

Century Pacific Food (CNPF), the Philippines’ largest canned food company and leading exporter of tuna and coconut products, reported that its earnings have reverted back to growth during the first quarter, increasing by 4 percent to R732 million.

In a disclosure to the Philippine Stock Exchange, the firm said consolidated revenues increase by 22 percent to R9.13 billion during the first three months of 2018.

Sales volume grew by a similar pace as the Company maintained market leadership in key segments and gained traction in newer categories.

“Though headwinds persist in terms of inflation and various input costs, these are being managed by both pricing and cost initiatives,” said CNPF Chief Finance Officer Oscar Pobre.

He added that, “more importantly, we continue to generate robust sales – a positive indication that consumer sentiment remains healthy, and that our brand building and sales generating activities are bearing fruit.”

CNPF started the year posting double-digit top line growth across its five different segments, continuing the buoyant revenue trend of 2017.

During the first three months of 2018, sales from all three branded businesses – Marine, Meat, and Milk –surged by 23 percent to R6.81 billion. This increased the branded units’ contribution to 75 percent of top line, compared to 72 percent during the full year last year.

Revenues original equipment manufacturer (OEM) product exports grew by 19 percent to R2.32 billion, as both the tuna and coconut segments benefitted from increased sales of higher value products.

These OEM units, which are primarily export-oriented businesses, also supported the Company’s bottom line with foreign exchange gains from the US dollar strengthening against the peso.

Margins remain challenged with raw material prices still higher compared to low-priced carry over inventories during the same period last year. Most of these input costs, however, have already seen marked improvement from the latter part of 2017.

“We continue to be cautious in our outlook for 2018 in light of the current inflationary environment. Nonetheless, we think this is an encouraging start and an indication of what will hopefully be improved performance relative to last year,” said Pobre. (JAL)