Century Pacific Food, Inc. (CNPF) is maintaining its P8-billion to P9-billion capital expenditure (capex) program this year, despite weaker consumer confidence, higher operating costs, and geopolitical uncertainties.
The company's president and chief executive officer, Teodoro Alexander T. Po, reaffirmed the capex plan during the company's annual stockholders' meeting on Tuesday, stating, "Our capex this year is about P8-9 billion, and we stand firmly behind that capex."
The spending program will focus on expanding production capacity for the company's domestic and export businesses, with a significant portion allocated to the company's original equipment manufacturer (OEM) export business.
According to Mr. Po, CNPF views demand for affordable nutrition in the Philippines as a long-term structural trend, supported by population growth and rising incomes. He added that the capacity built today will be meaningfully larger by the time it comes online.
The company remains committed to expanding capacity for both its export and domestic operations, driven by the strength of its export business, which accounts for 25% of its total business.
Despite a more challenging operating environment, CNPF reaffirmed its target of delivering double-digit growth in both revenue and earnings this year. The company expects the second half to perform similarly to, or slightly better than, the first half, supported by increased investments in its brands and easing geopolitical pressures.
In the first quarter, CNPF's net income rose 10% to P2.1 billion from P1.91 billion a year earlier, while consolidated revenue increased 15% to P23.25 billion from P19.94 billion.
The company's OEM export business posted 32% growth during the period, driven by improving tuna market conditions and sustained global demand for coconut products. CNPF's portfolio includes Century Tuna, Argentina, 555, Ligo, and Birch Tree, and the company is also one of the country's leading providers of private-label tuna and coconut products for export.
Following the announcement, CNPF shares rose 1.64% to P31 apiece on Tuesday.
