Canned food company Century Pacific Food Inc. (CNPF) booked an 11-percent increase in net income in 2019 to PHP3.1 billion from PHP2.8 billion the previous year.
In a statement Wednesday, CNPF said its last year’s consolidated revenues grew by 7 percent to PHP40.6 billion, driven primarily by double-digit growth in its branded business.
The branded business, comprised of marine, meat and milk business units, saw sales increase by 12 percent year-on-year, hitting PHP31.2 billion in topline and accounting for 77 percent of overall revenues.
In contrast, the commodity-linked tuna and coconut original equipment manufacturing (OEM) business, whose revenues accounted for the balance of 23 percent, saw sales fall by 6 percent year-on-year on the back of lower commodity prices.
Favorable commodity price trends led to improved profitability for the company overall, with consolidated gross profit growing faster than sales by 20 percent year-on-year. This translated to a 250-basis-point rise in overall gross profit margin to 24 percent.
The improvement in gross profit likewise allowed the company to invest more heavily in brands, new product development, and innovations, leading to an increase in operating expense of 13 percent.
Meanwhile, the company has assured the public of continued supply of its products to meet heightened demand amid the ongoing threat from coronavirus disease 2019 (Covid-19) and the enhanced community quarantine throughout Luzon.
“In these challenging times, we recognize the critical role we play in ensuring enough of our products are available to those who need them the most. Thanks to the support of the Department of Trade and Industry and the Inter Agency Task Force, we are able to maintain a smooth flow of goods and operate with enough capacity, despite the use of a skeleton workforce,” CNPF chief finance officer Oscar Pobre said.
Pobre said they will continue working closely with the government to ensure unhampered operations of the company and its supply chain partners.
“We also remain in close touch with partner local government units for the supply and donation of various food products. Finally, the health, safety, and financial protection of our employees remain paramount and we continue to provide them with care and financial aid,” he said.
CNPF recently announced it would be providing one million food packs to Filipinos amid the Covid-19 outbreak. The food packs will be distributed nationwide, targeting the communities that are severely impacted.
Further, the company has earmarked financial support to employees, communities, and various institutions in an effort to join the nation in its fight against Covid-19.