Century Pacific Food Inc. (CNPF) is forecasting to surpass its net income target of 10 percent to 15 percent this year, citing a robust first quarter performance.
On the sidelines of the company’s stockholders’ meeting in Ortigas Center on Thursday, Christopher Po, the company’s president, told reporters the momentum continues during the first half of the year.
“For the first quarter of the year, we grew our topline by 22 percent [to P6.40 billion from P5.24 billion], while our bottom line grew by 45 percent [to P636 million from P438 million]. So, for the balance of the year we expect that to continue,” Po said.
Po noted the first quarter results mainly came from consumer spending and the financial consolidation of newly acquired coconut firm Century Pacific Agricultural Ventures Inc. (CPAVI).
“It’s not apple to apple, because of the financial consolidation of our coconut business… We expect… some bumps. But we are looking at that trajectory. But our growth target, nonetheless, with respect to net income, is to grow it by double our GDP [gross domestic product]… If its 6.9 percent, then we intend to increase our net income by 10 to 15 percent,” he said.
CNPF produces Century Tuna, Argentina, Swift, 555, and Birch Tree.
It expects to book P2.5 billion in net income this year, up 32 percent from P1.9 billion in 2015.
The company has set aside P1.1 billion for capital spending to support capacity expansion and strengthen its brands in view of the Asean market integration that would elicit more competition and new products that are convenient, affordable and healthy.
The upside is that the company is attracting regional investors.
“In view of the Asean market integration, some counterparts from the region would like to partner with us rather that to compete with us,” said Po.