Century Pacific Food, Inc.'s Q124 Revenues Closed at P18.2 Billion, Posting 16% Growth

Century Pacific Food, Inc. (CNPF), one of the Philippines' major food and beverage firms, has announced its unaudited financial results for the first quarter of 2024. Consolidated revenues increased by 16% from the same time last year, while net income after tax increased by 15% year over year.

CNPF's consolidated sales for the first three months of the year were P18.2 billion. The bulk of sales came from the branded business, which included marine, meat, milk, and other developing categories. In an inflationary climate, CNPF's Branded division experienced a 10% YoY growth rate, displaying sustained growth performance.
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The revival of CNPF's commodity-linked OEM Tuna and Coconut Exports business will help boost the company's topline. OEM had a 49% YoY increase in revenues due to reduced commodity prices, which fueled demand, and a lower comparative base from the same quarter last year. Sequentially, the business increased by 29% from the preceding period.

Chad Manapat, CNPF’s Chief Financial Officer, said, “We are grateful to be able to deliver volume-led, double-digit growth, considering an operating landscape marked by consumer headwinds and soft markets. The all-weather business model and diversified portfolio of Century played a significant role in enabling us to deliver decent results for the period. On the Branded side, our offerings come in different price tiers to serve varying consumer needs. We focused on providing our consumers with affordable sources of nutrition, keeping our brands relevant during this time. Meanwhile, the OEM Exports business, which was challenged last year, is in recovery mode, given tailwinds in commodities.”

In terms of profitability, CNPF's 1Q24 gross margin increased by 250 basis points YoY to 26.1%, owing to favorable downward trends in most of its input costs. Gains were reinvested in demand-generating activities, as well as system and process enhancements. As a consequence, Net Income After Tax totaled P1.7 billion, up 15% from the first quarter of 2023. The net profit margin remained at 9.5%, substantially unchanged from the same quarter last year.

In the first quarter of 2024, CNPF launched its biennial flagship campaign, Century Tuna Superbods 2024: Best You Ever, an inclusive engagement aimed at encouraging health, wellbeing, and fitness for all. Other promotions featured value-for-money meat options and new milk packaging stressing nutritional benefits.

During the period, CNPF also announced a new enlarged arrangement with The Vita Coco Company, Inc., which includes extra incremental quantities of roughly 90 million liters of coconut water over the next five years. CNPF will invest $40 million to enhance its coconut processing capacity, which will benefit both its OEM and domestic coconut businesses and provide potential for development. This is intended to generate 1,500 quality manufacturing jobs in Mindanao.

Manapat concluded, “We are thankful for the first quarter’s healthy momentum, which we expect to normalize and align with our full year outlook as we move forward. Uncertainties remain, especially with inflation looming over our operating landscape and dampening consumer sentiment. Thus, we continue to operate with cautious optimism, aiming to grow the business sustainably in the low double-digit territory as we remain resolute in our mission of providing affordable nutrition to Filipino consumers.”