Century Pacific Food, Inc. Reported P5.6 Billion Net Income, Up 12%, Revenues P67.1 Billion, Up 8% in 2023

Century Pacific Food, Inc. (CNPF), one of the leading branded food and beverage companies in the Philippines, concluded the year 2023 by delivering consistent, profitable growth despite the inflationary environment. Net income after tax amounted to P5.6 billion, up 12% versus the previous year.​

With consolidated sales of P67.1 billion, up 8% from 2022, the company achieved growth on a difficult foundation. For the last five years, CNPF has shown steady revenue growth at a compound annual growth rate of 13%. Revenues climbed by 14% annually in 2022.

The strength of CNPF's branded business drove its topline performance in 2023, outperforming the Original Equipment Manufacturer (OEM) Exports segment's weakness.
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Making up the bulk of the group's sales, the Branded division is the main engine of CNPF's growth. It is made up of the following emerging segments: Pet food, coconut, chilled food, meat, milk, and plant-based alternatives.

For FY23, the Branded segment posted an increase of 11%, following a robust 16% YoY growth from the year before. Branded sales were boosted by the faster-growing Milk and other emerging segments and the steady performance of core Marine and Meat segments.

CNPF’s Chief Financial Officer, Chad Manapat, said, “The Branded business continued to exhibit resilience amidst a volatile macroeconomic environment. Our primary focus is on delivering affordable nutrition through our vast assortment of brands and products spanning multiple price tiers – our way of providing value to our consumers in both good and challenging times.”

In 2023, CNPF's OEM Tuna and Coconut Exports business, which is connected to commodities, experienced a decline. Due to supply chain issues and higher material prices, which in turn caused softer markets, the segment had a 4% YoY decline. Nevertheless, the segment experienced growth in the fourth quarter of 2023, rising 18% over the same period in the previous year thanks to favorable commodity trends and a low comparable base.

Profitability-wise, CNPF's gross margin came in at 24.0%, up 95 basis points year over year due to declines in the majority of its input costs, particularly in the latter part of the year. Together with effective OPEX management, gross margin improvement caused earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise by 15% year over year to P8.7 billion. Similarly, the EBITDA margin improved by 80 basis points to 13.0%.

Net income after tax was P5.6 billion, up 12% from the prior year and translating into a modest 30-basis point year-over-year increase in net profit margin to 8.3%.

CNPF produced P8.4 billion in operating cashflows in 2023. Of which P1.4 billion—an increase of 11% over the previous year—was distributed as dividends. In order to improve the company's capacity to use renewable energy, an additional P1.5 billion was reinvested in capital expenditures for capacity expansion and sustainability efforts. In addition to commissioning a new biomass boiler that runs on coconut shells, CNPF increased its solar capacity to 8.8 MW.

The three pillars of the CNPF's sustainability framework are people development, planet preservation, and protein delivery. Along these lines, the company has been investing in renewable energy and has also launched a program called "Saving Our Seas" to promote the circular economy. This program empowers coastal communities to take action against plastic pollution and supports female micro-entrepreneurs in the community. One of the company's leading brands is Century Tuna. Prior to the Extended Producer Responsibility Act, the Group continued to reduce its plastic footprint by maintaining its brands as "100% Net Zero Plastic Waste." Furthermore, 12.4 million protein servings were provided to partner communities across the country by CNPF through its nonprofit arm, the RSPo Foundation.​

Manapat said, “On the whole, we are pleased to deliver consistent and profitable growth despite operating in a volatile environment in 2023. We attribute this to the all-weather nature of our business model, diversified portfolio, and prudent usage of our resources. We ended the year on solid footing, putting us in a good position to reinvest in growth and sustainability as well as to provide our shareholders with a healthy return on their investment.”

“We are only in the early days of 2024. While the road ahead is still clouded with uncertainty, Century Pacific remains committed to grow in the low double-digit territory for both top and bottomline. We plan to reinvest gains from improving commodities into growth and expansion, as we continue to focus on affordability and providing better, healthier food options to Filipino consumers,” Manapat concluded.

Century Pacific Food, Inc. (PSE: CNPF) is one of the Philippines' leading branded food and beverage companies. It is primarily engaged in the manufacturing, marketing, and distribution of processed marine, meat, milk, coconut, plant-based, and pet products. With an established track record in brand-building spanning more than 40 years, it holds a roster of household names which include Century Tuna, Argentina, 555, Ligo, and Birch Tree. These brands of the Company hold market leading positions locally and are growing their presence abroad. Further, the Company also operates as one of the Philippines' leading providers of private label tuna and coconut products for export overseas​.