Tuna canner sets 10­-15% profit guidance

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Tuna canner Century Pacific Food Inc. (CPFI) on Tuesday said revenues and net income are likely to grow by 10 percent to 15 in tandem with market demand for its branded business.

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President and CEO Christopher T. Po told reporters after the firm’s annual stockholders’ meeting that the company is targeting to grow its sales and net profits by “10 percent to 15 percent… for the next two to three years.”

The branded business is the growth driver this year, factoring in local consumption and slow inflation while the economic output continues to register gains.

In terms of net income margin, the company is targeting to maintain between 7 percent and 8 percent as costs are expected to remain flat even if prices of raw material may increase.

In 2014, the firm posted a net income of P1.6 billion or more than double than the P740 million in 2013.

Its canned tuna business accounted for 40 percent last year’s revenues, with tuna exports at 20 percent, canned meat at 30 percent, and dairy and mixes at 10 percent.

The company is setting aside P820 million in capital expenditure (capex) for 2015, of which P450 million will be spent for the ongoing construction of its cold storage facility and the rest go to regular operating expenses. Century Pacific spent P450 million in 2014.

The capex will be sourced from the P2.7 billion raised from an overnight equity placement by parent firm Century Pacific Group Inc. in May.

In the first quarter of the year, the company posted P438 million in net income –up 37 percent from P320 million a year earlier. Revenues grew by 16 percent to P5.2 billion from P4.5 billion.

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