Branded Products Fuel Strong Income Growth
Century Pacific Food Inc., a leading food and beverage manufacturer, has reported a solid financial performance for the first half of the year, with a net income after tax reaching P3.9 billion, marking a 7 percent increase year-on-year. This notable growth was primarily driven by the company’s branded segment, which saw a double-digit rise in sales volume and a 9 percent increase in overall revenue. This positive momentum from its core products effectively offset a decline in its original equipment manufacturing (OEM) export business. According to Chief Financial Officer Chad Manapat, this success is the result of deliberate and sustained brand-building, pricing strategies, and sales generation efforts that have been in place since last year. He also acknowledged that while easing inflation has provided some relief to consumers, their demand for value-conscious and affordable products remains strong, which the company has focused on addressing.
Strategic Investments and Financial Stability
Century Pacific’s financial stability and strategic planning are evident in its key metrics and long-term initiatives. While the company’s gross margin saw a slight decrease to 25.7 percent due to the normalization of input costs, it was effectively managed through a reduction in operating expenses, which improved the net profit margin to 9.8 percent. The company’s commitment to brand building was also a key focus during the period, exemplified by its Protein Fit Campaign featuring Korean actor Park Seo Joon. Furthermore, the company has secured its future through significant capital expenditures of P1.5 billion, which were allocated to capacity expansion and sustainability initiatives. A major highlight was the renewal of a long-term contract with The Vita Coco Co. Inc., valued at approximately P14 billion over five years, which ensures a stable revenue stream and demonstrates the company’s robust partnerships.
Ambitious Outlook and Shareholder Returns
Looking ahead, Century Pacific has set ambitious goals for the remainder of the year and beyond, confident in its ability to achieve them. The company aims to deliver high single to low double-digit growth in both its top and bottom lines for 2025, a target supported by the resilience of its branded business. CFO Chad Manapat also stated that the company’s long-term ambition is to grow at approximately twice the pace of the country’s gross domestic product each year. In a move to reward shareholders, the company declared a special dividend of P0.55 per share, in addition to the P0.55 regular dividend already distributed this year. Despite the positive news, shares of Century Pacific experienced a slight dip on Wednesday, closing down 2.86 percent at P34.00, reflecting some market volatility even in the face of a strong financial report.
