Century Pacific Food Inc., the country’s largest canned food company, on Wednesday said its net earnings for the first three months of the year grew by almost half to P636 million.
In a statement, the company said during the first quarter of the year its net income grew by 45 percent to P636 million from P438 million during the similar period last year.
The company attributed its strong performance to increasing local demand for its branded products, lower prices of key raw materials, and the financial consolidation of newly acquired Century Pacific Agricultural Ventures Inc. (CPAVI).
Century Pacific’s revenues were up by 22 percent to P6.40 billion from the P5.24 billion posted during the same period a year before.
Sales from the three branded businesses – marine, meat and milk – grew by 15 percent year-on-year and continue to account for 78 percent of the company’s topline.
“The domestic economy remains vibrant and our strong market position has allowed us to benefit from increased per capita consumption. Improved sales distribution and well-executed marketing campaigns have also helped us sustain double digit growth, enough to offset weakness in our private-label tuna export business where the global situation remains challenged,” CNPF’s Chief Finance Officer Oscar Pobre said.
The company’s first quarter operating income and earnings before interest, depreciation and amortization (Ebitda) amounted to P860 million and P934 million, up by 40 percent and 43 percent, respectively.
“We have built up good momentum in sales volume growth, plus subdued raw material prices and hedging strategies have also allowed us to continue our program of investing in our brands. These include holding the trademark Century Tuna Superbods event, launching the new Swift Premium Corned Beef, as well as engaging in various marketing
campaigns for 555 Carne Norte and Angel Evaporated Milk,” Pobre said.
CNPF’s non-branded segment likewise experienced a boost with the consolidation of CPAVI, which has benefited from the rising global trend toward healthy and organic coconut products.
Finally, the firm noted improved sales mix and increased contribution from higher margin products, indicating consumer willingness to pay for more premium items.
CNPF also cited strong sales performance coming from modern retail chains as well as convenience stores, which have expanded quickly across the country.