Century Pacific earnings up 10%

CENTURY Pacific Food, Inc. reported on Wednesday that its earnings in the first quarter rose by 10% to P1.4 billion, driven by the performance of its branded segment.

“The first quarter of 2022 has received more than its fair share of headwinds, yet, concurrently, we are feeling tailwinds coming from the Philippine economic reopening,” Century Pacific Chief Finance Officer Richard S. Manapat said in a statement.

“Consumers are feeling the impact of rising commodity prices but, compared to the height of the pandemic, have more disposable income. They continue to gravitate toward essential goods and value for money brands, underpinning the demand for Century products,” he added.

Consolidated net revenues likewise increased by 10% to P14.7 billion from the similar period the year before.

Of its businesses, the branded segment contributed 82% to the company’s topline. The segment is composed of marine, meat, milk and other emerging businesses.

The company reported a year-on-year growth of 17% as domestic demand for affordable and shelf-stable consumer goods remained resilient for the quarter.

Meanwhile, the company’s tuna and coconut exports business contracted by 13% due to rising freight rates from Asia to the West and limited container availability.

Mr. Manapat said he was grateful for the continued resilience shown by the company.

“We have seen two consecutive years of extraordinary performance and kickstarted 2022 with healthy business results. This puts us in a good position to power through what we expect to be a volatile year, especially with respect to rising input prices,” he said.

He added that the company is intent on pursuing “long-term growth initiatives” by continuously boosting its core marine and meat businesses and investing in the growth of its emerging businesses, citing newly launched “innovations.”

In 2019, the company launched its packaged culinary coconut cream brand Coco Mama, which has been posting “strong results” since then.

In 2020, it entered the nascent plant-based meat alternatives category with the launch of its unMEAT brand. It also entered the pet food market last year with its brand Goodest.

“We see much uncertainty lying ahead but in times like these, we believe it is crucial for us to remain focused on running a sustainable business for our stakeholders. To us, that means keeping to our mission of providing affordable nutrition to our consumers, staying true to our strategic priorities, and proactively managing risks to deliver decent business results in parallel,” Mr. Manapat said.

Century Pacific is primarily engaged in manufacturing, marketing, and distributing processed marine, meat, milk, coconut, plant-based, and pet products. Its brands include Century Tuna, Argentina, 555, Angel, and Birch Tree.

Century Pacific stocks dropped by 70 centavos or 3.06% to close at P22.20 each at the stock exchange on Wednesday. —