CENTURY Pacific Food Inc. on Thursday said first-quarter net income grew 10 percent from a year ago as resilient consumer demand and recovering export sales helped offset rising input costs.
In a disclosure, the company said net income after tax rose to P2.1 billion in the January to March period from P1.9 billion a year earlier.
Consolidated revenues increased 15 percent to P23 billion, while operating income climbed 17 percent year on year.
Growth was said to have been driven by sustained demand for affordable food products under its branded segment and continued recovery in the original equipment manufacturing (OEM) export business.
The company said branded revenues, which accounted for about 80 percent of total sales, grew 11 percent year on year as consumers continued to favor value-for-money and trusted food brands amid a challenging environment.
OEM export sales, meanwhile, jumped 32 percent amid improving tuna market conditions and steady global demand for coconut products.
Higher input costs, however, pulled gross margins down by 100 basis points to 25.1 percent, although gains from dollar-denominated export revenues helped offset cost pressures, allowing operating margins to expand by 20 basis points to 11.9 percent.
Bottom-line growth, the company said, was tempered by a higher effective tax rate following the expiration of certain tax incentives.
“Our consumers continue to reach for our brands,” Chief Financial Officer Chad Manapat said.
The company introduced Blue Bay Corned Tuna and Superbowl by Century Tuna during the quarter, aimed at expanding its value and convenience offerings.
Manapat said the company remained cautious amid uncertainties arising from the ongoing conflict in the Middle East, saying that “near term, we are proactively navigating the unpredictability of the situation to ensure that we mitigate the impact to the extent possible.”
Century Pacific added it would continue investing in capacity, technology, supply chain improvements and value-focused products while managing costs carefully.
The company’s shares on Thursday rose P2.25, or 7.83 percent, to close at P31.00 each.
NAZYLEN JOY MABANGLO
