The food giant just dropped a bombshell: net income surged 10% in the first quarter, hitting P2.1 billion despite a storm of rising costs and heavier taxes. Century Pacific Food is proving that smart strategy beats economic chaos every time.
Consolidated revenues exploded 15% higher to P23.25 billion, driven by a powerful one-two punch. Branded sales roared ahead while export manufacturing demand staged a jaw-dropping comeback.
An incredible 80% of those revenues came from the branded segment alone—spanning marine, meat, milk, coconut, and emerging categories. Consumers are flocking to affordable yet trusted products, and this company is cashing in.
Branded business delivered an 11% year-on-year boost, fueled by relentless demand for value-for-money goods. In a challenged consumer landscape, people are voting with their wallets for this portfolio.
Meanwhile, OEM exports exploded with a 32% surge, shaking off prior-year lows. Improving tuna markets and insatiable global appetite for coconut products are fueling this spectacular rebound.
Gross profit climbed to P5.77 billion, but margins tightened slightly to 25.1% as input costs rose. The company's secret weapon? Dollar-denominated export revenues that act as a natural hedge against those creeping expenses.
Operating income jumped 17.4% to P2.73 billion, with margins inching up to 11.9%. Even as operating expenses swelled to P3.31 billion, the company kept its foot on the gas.
Financing costs nearly doubled—a stark reminder that growth isn't cheap. Yet earnings still accelerated, though higher taxes from expired incentives took a bite, sending the tax bill to P504 million from P351 million.
Net profit margins softened slightly to 9.1%, but the 10% income growth tells the real story. Cash reserves stood strong at P2.9 billion, and capital expenditures of P871 million poured into new equipment and machinery.
Interest-bearing debt hit P10.3 billion, with P7.3 billion due within a year. The market's verdict? Shares soared 7.83% to P31 apiece, signaling investors see a resilient powerhouse in motion.
