EARNINGS of Century Pacific Food, Inc. (CNPF) rose 9.34% in the second quarter of 2019, thanks to consistent demand for its branded food products such as Century Tuna, 555 and Birch Tree.
In a regulatory filing, the listed canned goods manufacturer said net profit reached P917.36 million in the three months ending June, higher than the P838.94 million it booked in the same period a year ago.
This came amid flattish growth in net revenues at one percent to P9.87 billion in the same period.
On a six-month basis, the listed firm’s net income grew 8.78% to P1.71 billion, while net revenues rose 5.77% to P19.61 billion.
CNPF’s branded business accounted for 78% of total revenues at P15.3 billion, 12% higher year on year. The company attributed the growth to the stable demand for its branded products in marine and meat categories, alongside the growing sales of milk.
The company’s brands include Century Tuna, 555, Blue Bay, Fresca, Lucky 7, Argentina, Birch Tree, Kaffe de Oro, and Home Pride, among others.
The firm noted that milk products generated 22% of total sales by end of June, compared to its 11% contribution in end-2016.
Meanwhile, CNPF’s original equipment manufacturer exports dropped as the company had to reduce prices due to lower commodity prices of tuna and coconut.
“We are relieved that growth in our core branded products was sustained in spite of the dampening effects of El Niño in some parts of our country,” CNPF Chief Finance Officer Oscar Pobre said in a statement.
Mr. Pobre said they remain on track to hit their target of double-digit growth for the year, banking on its core branded business and other innovations throughout 2019. — Arra B. Francia