TUNA canner Century Pacific Food Inc. (CNPF) said net income rose 37 percent last year on sustained revenue growth and the contribution streams from its recently consolidated coconut subsidiary.
CNPF said its consolidated net income jumped 37 percent year-on-year to P2.66 billion in 2016 while total revenues grew 21 percent to P28.29 billion.
The expanded revenue was attributed to the double-digit increase in the sales of its branded products and robust revenue from its growing coconut exports business.
“We continue to benefit from consumers’ increasing demand for affordable, convenient and healthy products,” CNPF Chief Finance Officer Oscar Pobre said in a statement.
“While fourth quarter was slower than previous periods which benefitted from an election bump, our branded businesses have maintained market leadership in core segments and we have likewise gained traction in emerging product categories,” he added.
CNPF saw overall profitability improve with a 39-percent rise in gross profits and a 32-percent increase in operating income for the full year 2016. This translated to gross margin and operating margin of 30 percent and 13 percent, respectively. The firm said this was due to favorable input costs for most of the year and its inventory hedging strategies.
“2017 will be a more challenging year for us as we face rising commodity prices. However, through brand and pricing management, efficiency gains, and cost reduction initiatives, we should be able to strike a balance between growing demand and improving profitability,” Pobre said.
Incorporated in 2013, listed CNPF has established market leadership mainly for its canned tuna, meat and milk brands such as Century Tuna, Argentina Corned Beef, 555 Sardines, and Birch Tree.