Century Pacific Food Inc. (CNPF) registered 46 percent growth in net income for the first half of 2016.
The producer of canned tuna said its net income for the period rose to P1.36 billion from P935.32 million in the corresponding period of 2015.
The company attributed the increase to strong demand for its branded food products, which pushed sales up by 15 percent to P13 billion, against P11 billion a year ago.
“Top line growth across our 3 M’s—Marine, Meat, and Milk—continues to be driven almost completely by increases in volume,” Chief Finance Officer Oscar Pobre said.
Revenue growth was attributed to the aggressive expansion plans of retailers locally, while in the international scene, there was a trend toward healthy and organic coconut products that is offsetting sales weakness in private-label tuna.
The company said that profit growth was also helped by buying strategies, subdued input costs and increased revenue contribution from higher margin segments.
Gross profit margins expanded to 30 percent from 26 percent the year before, while net income margins increased to 10 percent from 8 percent in 2015.
CNPF is targeting 21 percent growth in net income and 14 percent expansion of sales for full-year 2016.
The company’s products include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk and Birch Tree.
CPFI has three wholly owned subsidiaries: Allforward Warehousing Inc. for warehousing, Snow Mountain Dairy Corp. for making dairy and mixed products; and General Tuna Corp. for canned and processed fish products.