LISTED food canner Century Pacific Food, Inc. reported flat consolidated net income for the first nine months of the year compared to last year as continued input price pressures tempered profit margins.
The company said net income in the first nine months reached P2.2 billion, up just 2 percent from a year ago, while consolidated revenues increased 20.47 percent to P25.3 billion.
Revenue from branded food rose 12 percent to P18 billion, while revenue from the overseas export market (OEM) jumped 45 percent to P7.3 billion, it said.
“We continue to see healthy revenue growth despite our higher base during the third quarter of last year,” Century Chief Finance Officer Oscar Pobre told the Philippine Stock Exchange on Monday.
“Branded food in particular continues to be driven by increases in sales volume across all segments—marine, meat, and milk. OEM on the other hand saw a combination of higher volumes and higher average selling price, as global demand for both tuna and coconut remains strong and as we diversify into higher value products,” he added.
For the third quarter, Century said consolidated gross profit declined by 3 percent due to significantly higher input costs year-on-year and the faster growth of lower margin OEM businesses.
Operating income firmed one percent year-on-year “as the company worked on reducing administrative costs, causing a decline in operating expense by 2 percent.”
These translated to a gross profit margin of 25.7 percent and an operating margin of 11.8 percent from January to September, the company said.
“We continue to encounter elevated raw material prices and headwinds on our profitability metrics which are likely to remain up to middle of next year. Despite these challenges which we believe are cyclical in nature, we remain focused on delivering the company’s strategy of sustainable earnings growth over a longer time period,” Pobre said.