CENTURY Pacific Food Inc. (CNPF) on Thursday reported a six-percent increase in first-half net income as resilient demand for its branded products and a recovery in export sales helped offset higher costs and disruptions caused by an earthquake that struck General Santos City in June.
In a disclosure, the listed food manufacturer said net income grew to P4.1 billion from P3.9 billion while consolidated revenues rose 15 percent to P45.8 billion.
Excluding one-off provisions related to earthquake damage that remain subject to insurance claims, core net income increased 10 percent year on year.
The company’s branded business, which accounts for the bulk of its sales, grew 13 percent in the first half despite softer consumer spending, supported by demand across its marine, meat, milk, coconut and emerging product segments.
Its original equipment manufacturer export business expanded 26 percent in the first half as tuna export markets improved and global demand for coconut products remained strong.
Growth in the second quarter, however, slowed to 21 percent as the June temblor affected key manufacturing facilities in General Santos.
Chief Financial Officer Chad Manapat said the company faced a difficult operating environment during the first six months of the year as higher fuel prices increased costs and dampened consumer purchasing power.
“Our operating conditions in the first half were far from smooth. Fuel prices soared, squeezing our consumers while adding pressure to our operating costs,” he said.
The company responded by tightening spending and implementing measured price increases that remained below inflation to balance rising costs with product affordability.
Gross profit margin improved by 20 basis points to 25.9 percent in the period, offsetting a similar increase in operating expenses as a share of sales. Operating income rose 15 percent in line with revenue growth.
Century Pacific said higher finance costs and the expiry of certain tax incentives also tempered earnings growth during the period.
The company ended the first half with gearing and net gearing ratios of 0.33 times and 0.28 times, respectively.
Looking ahead, Manapat said Century Pacific remained committed to sustaining double-digit growth despite continuing headwinds.
It earmarked about P8 billion in capital expenditures for this year, double its typical annual investment, to expand capacity, strengthen food security and support long-term growth.
Shares of the company dropped P0.20, or 0.62 percent, to close at P32.10 each on Thursday.
