Century Pacific Earns P2.7B
Century Pacific Food, Inc., one of the Philippines’ leading branded food companies, ended the first half of 2021 with a net income of P2.7B, clocking in a double-digit growth of 21% versus the same period last year on the back of strong export sales, resilient local demand, and favorable tax rates.
Photo Insert: Century Tuna is one of CNPF's core brands
Consolidated revenues landed at P27.0B – up by 8% despite the surge in sales in the comparable period last year.
This performance was primarily driven by the double-digit growth in the Company’s OEM exports business, which was up by 29% year on year as a result of the continuous reopening of global markets.
CNPF’s branded revenues were sustained versus last year, registering a 3% year-on-year growth, notwithstanding spikes in demand due to strict lockdowns imposed in the first half of 2020.
Chad Manapat, CNPF’s Chief Financial Officer, said, “We are grateful for this revenue growth following the surge in sales we saw last year. We see this as a reflection of organic demand, given that pantry loading hasn’t occurred in the same magnitude as 2020.”
On profitability, gross margins, and operating expenses as a percentage of sales were maintained, thus, EBITDA registered a growth of 9% in 1H21, tracking topline performance.
The Company also benefited from favorable tax rates due to the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and an income tax holiday on its new tuna plant, lowering effective income tax rates to 16%.
According to Manapat, profits will be reinvested in capacity expansion programs, sustainability initiatives, and upcoming innovations. CNPF is currently expanding its coconut production facility to boost the plant’s capacity by 50%.
This is expected to go online in the third quarter of the year, generating 500 quality manufacturing jobs.
The Company also recently commissioned a 5.2mw Solar PV plant to partially serve the energy requirements of its tuna and coconut manufacturing facilities in General Santos.