CPFI 9-mth profit up 22%


Tuna canner Century Pacific Food Inc. (CPFI) posted a P1.5-billion net income for January to September, up 22 percent from a year earlier.

In a statement released on Monday, the company said revenue rose 13 percent to P17.2 billion from P15.2 billion in the same period.

The increase came on the back of a 15-percent improvement in sales of the company’s canned tuna, meat and milk products, as well as a 5-percent rise in its non-branded tuna exports.

“The domestic branded business continued to be bolstered by effective sales and marketing programs,” CPFI Chief Finance Officer Oscar Pobre said. “On the other hand, trading conditions were tough in the Original Equipment Manufacturer (OEM) business for tuna export.”

CPFI’s operating income grew 19 percent to P2.1 billion, boosting operating income margins by 60 basis points from a year ago.

“The operating margin for the branded business as a whole remained stable, while that of the non-branded business improved due to better sales mix,” Pobre said.

The tuna canner recently acquired coconut producer Century Pacific Agricultural Ventures Inc. (CPAVI) for P4.5 billion, as it saw bright prospects for the coconut market, with consumers around the world becoming more health-conscious.

The company plans to integrate coconut production into its production of organic and conventional coconut products such as coconut water, virgin coconut oil and desiccated coconut.

CPFI is behind the household brands Century Tuna, 555, Blue Bay, and Fresca, for canned tuna products; Argentina, Swift, Shanghai, Wow Ulam, and Lucky 7, for canned meat products; Angel and Birch Tree, for canned milk and dairy mixes; Kaffe de Oro for coffee mixes; and Home Pride brand for the flavor mixes.

The company has set aside P820 million for capital expenditure (capex) this year, almost doubling its P450-million spending in 2014.

Of this year’s P820-million capex, CPFI will spend P450 million for the ongoing construction of its cold storage facility, while the rest will go to its regular operating expenditures.

Incorporated in 2013, CPFI is engaged in the manufacture of canned and processed fish, canned meat, dairy and mixes, and the export of tuna.

Other than its new coconut-producing unit, CPFI has three wholly owned subsidiaries: Allforward Warehousing Inc., for its warehousing needs; Snow Mountain Dairy Corp., for making dairy and mixes products; and General Tuna Corp., for canned and processed fish products.

CPFI also has two affiliates: fast food retail arm Yoshinoya Century Pacific Inc. and Pacific Meat Company Inc. The latter owns the Swift and Argentina brands.


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