Century Pacific Food profit up 11%

LISTED Century Pacific Food Inc. saw its net income increase to P3.1 billion last year on the improved sales performance of its branded units.

In a disclosure on Wednesday, the canned-goods producer said

the amount was an 11-percent increase from the year-earlier figure, while its consolidated revenues rose by 7 percent to P40.6 billion.

Century Pacific Food credited the revenue growth to the doubledigit rise in its branded business, made up of its marine, meat and milk business units.

The branded business’ sales rose by 12 percent year-on-year to P31.2 billion, which accounted for 77 percent of total revenues.

The rest was contributed by the commodity-linked business tuna and coconut OEM, whose sales fell by 6 percent in 2019 due to lower commodity prices

“Favorable commodity price trends led to improved profitability for the company overall, with consolidated gross profit growing faster than sales by 20 percent year- on- year,” Century Pacific Food said.

“This translated to a 250-basispoint rise in overall gross profit margin to 24 percent,” it added.

This profit growth allowed for more investments in brands, new product development and innovations, which the company said increased its operating expenses by 13 percent.

Century Pacific Food produces Century Tuna, Argentina, 555, Swift, Birch Tree Fortified Milk, Angel Milk, Fresca, Wow Ulam, Hunt’s and Coco Mama.

Century Pacific Food shares ended flat at P13.50 apiece on Wednesday.