PO-LED Century Pacific Food, Inc. (CNPF) recorded a 12% increase in its 2023 net income to P5.6 billion, driven by higher sales.
The listed food and beverage manufacturer saw an 8% growth in revenues to P67.1 billion despite the softening of its original equipment manufacturer (OEM) exports segment, CNPF said in a regulatory filing on Monday.
CNPF said its branded segment, which accounted for majority of sales, recorded an 11% sales growth, led by the milk, marine, and meat segments.
The branded segment also includes products such as pet food, coconut, refrigerated food, and plant-based alternatives.
The company saw a 4% decline in its OEM tuna and coconut exports segment due to the supply chain challenges and elevated commodity costs that led to softer markets.
“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,” CNPF Chief Financial Officer Richard Kristoffer S. Manapat said.
CNPF recorded a 15% increase in earnings before interest, taxes, depreciation, and amortization to P8.7 billion as a result of gross margin expansion and “efficient” operating expenses management.
“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,” Mr. Manapat said.
“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,” he added.
CNPF generated P8.4 billion in operating cash flows last year, of which P1.4 billion was released as dividends, while P1.5 billion was reinvested in capital expenditures for capacity expansion and for renewable energy initiatives.
The company expanded its solar capacity to 8.8 megawatts and commissioned a new biomass boiler that can be fueled by coconut shells.
Meanwhile, Mr. Manapat said that CNPF aims to grow its top line and bottom line in the low double-digit territory this year.
“We are only in the early days of 2024… 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,” he said.
CNPF’s brands include Century Tuna, Argentina, 555, Ligo, and Birch Tree. The company is also one of the leading providers of private label tuna and coconut products for export.
CNPF shares fell by 0.82% or 30 centavos to P36.50 apiece on Monday. — Revin Mikhael D. Ochave
