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Century Pacific Food Revenues Hit ₱50 Billion

Writer's picture: By The Financial DistrictBy The Financial District

Century Pacific Food, Inc. (PSE: CNPF), one of the leading food and beverage companies in the Philippines, achieved consistent growth performance in the third quarter of 2023.


Profits began to gain momentum during the three-month period, up by 13% year-on-year, thanks to favorable commodities and sustained topline growth. I Photo: © CNPF



Profits began to gain momentum during the three-month period, up by 13% year-on-year, thanks to favorable commodities and sustained topline growth. Consolidated revenues for the first nine months of the year amounted to ₱50.5 billion, marking a 7% increase compared to the same period last year.


This growth was primarily driven by Branded sales, which experienced a 12% year-on-year growth rate as domestic demand for consumer staples and value-for-money goods remained resilient.



Third-quarter sales increased by 7% compared to the same period in 2022, bolstered by a 14% growth in the Branded segment for the period.


CNPF’s Branded business consists of the Marine, Meat, Milk, and other emerging segments, making up the majority of the company’s revenue. It serves the domestic market predominantly.


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During the nine-month period, Milk and other emerging segments outperformed, while core segments maintained their growth performance.


In contrast, the Company’s OEM Tuna and Coconut Exports segment faced challenges during the first nine months, declining by 10% year-to-date. 3Q23 revenues were also down by 15% compared to the same period last year.


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Aside from a high base in 2022, the OEM business encountered difficulties due to softer markets influenced by global inflation. Nevertheless, sales were generally sustained on a quarterly basis.


Chad Manapat, Chief Financial Officer of CNPF, stated, “Amidst headwinds, we observed domestic consumer demand for our brands and products remaining resilient, highlighting the significance of affordability and accessibility. We focused our programs on value-for-money offerings and innovations."


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“We also continued to benefit from a diversified, all-weather portfolio, enabling us to consistently achieve growth in both the top line and bottom line despite a complex operating environment," he continued.


Regarding profitability, CNPF started to see margin improvements in the third quarter. The 3Q23 gross margin increased by 130 basis points compared to the same period last year, reaching 24.6%.


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This softened the contraction in year-to-date gross margins, which stood at 24.2%, a 30 basis point decrease compared to 9M22. These improvements can be attributed to favorable movements in most of the company’s major raw materials, as well as cost optimization measures.


Operating expenses as a percentage of sales were 13% for the nine-month period, 110 basis points lower than the previous year. According to Manapat, this was driven by cost management, with OPEX spending intentionally focused on the second half of the year to support key innovations and demand-generating activities.


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With improved gross margin performance and effective cost management, CNPF's net income after tax (NIAT) accelerated in the third quarter of 2023, with a 13% year-on-year growth.


On a year-to-date basis, the bottom line for 9M23 reached ₱4.6 billion, showing a 10% year-on-year growth, with the net margin for the nine-month period seeing a 20-basis point improvement, reaching 9.2%.


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CNPF’s healthy operational performance resulted in strong cash flow generation. Operating cash flows amounted to ₱5.1 billion, which was utilized for increased dividends to its shareholders, expansion programs and innovations, and investments in renewable energy.


The company is expanding its General Santos solar plant's capacity from 5.2MW to 8.6MW, which supplies clean power to its largest manufacturing hub in the Philippines. It is also commissioning a biomass boiler for its coconut production facility in Mindanao.


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In the third quarter, CNPF was also recognized for corporate governance, receiving three Golden Arrows from the Institute of Corporate Directors (ICD) at the ASEAN Corporate Governance Scorecard (ACGS) Golden Arrow Awards.




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