Canned tuna. (Photo: Century Pacific)
Century Pacific records slight income growth in H1
Friday, August 03, 2018, 01:50 (GMT + 9)
Tuna canner Century Pacific Food Inc. achieved a slight increase in its income during the first six months of the year, despite a sales surge during the period.
The company said its profit grew by seven per cent for the period from January to June, to PHP 1.57 billion (USD 29.5 million) and by nine per cent year-on-year in the second quarter, to PHP 838.93 million (USD 15.8 million).
“We saw a branded sales surge during the first half, as we hit records in terms of volumes sold and distribution outlets reached. We believe local macroeconomic factors have favoured demand for our products, which have wide appeal and reach a broad consumer base. We are likewise seeing sustained brand affinity as a result of our marketing efforts, and reaping the fruits of improvements in our distribution network made over the last 12 months to 18 months,” said Oscar Pobre, the company’s chief finance officer.
During the analysed period, revenues rose 21 per cent, to PHP 19.55 billion (USD 368.3 million) on the back of strong topline growth from its branded segment.
Its branded business accounted for three quarters of total to PHP 14.40 billion (USD 271.3 million), 25 per cent higher versus the same period last year.
It said the company’s marine, meat and milk segments each sustained double-digit increases and contributed significantly to growth.
“We are hopeful the robust sales numbers will continue, but expect more muted year-on-year increases from here as we face higher revenue comparable periods moving forward. We are also watchful as competition intensifies, though we remain positive our market leadership and growth prospects in emerging categories will help mitigate the effects,” Pobre stressed.
The firm’s CFO explained that they continue to see rising costs in other parts of the business, including certain raw materials and packaging, freight, and other expenses, which may cause margin pressure and temper earnings growth.