Century Pacific Food Inc., the Philippines’ largest canned food company, said Wednesday net income rose seven percent to P1.57 billion in the first six months of 2018 from P1.47 billion year-on-year on the back of double-digit growth in sales.
Century Pacific said in a disclosure to the stock exchange first-half revenues totaled P19.32 billion, up 20 percent from a year ago, with the branded business accounting for 75 percent of the total.
Branded sales which include marine, meat and milk segments, stood at P14.4 billion in the six months ending June, representing a 25-percent increase on year.
“We saw 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 favored 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 to 18 months,” Century Pacific chief finance officer Oscar Pobre said
Revenues from the original equipment manufacturer business were also up nine percent to P4.9 billion in the six months ending June.
“We are hopeful that 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 remain positive that our market leadership and growth prospects in emerging categories will help mitigate the effects,” added Pobre.
The cost of sales consisting mainly of raw material and packaging costs, manufacturing and labor costs jumped 21 percent to P14.22 billion due to higher raw material prices, especially for tuna, meat, and packaging.
The company earlier projected a mid-single digit growth in net income this year on increasing cost pressures brought about by the rise in fuel costs, higher cost of raw materials and the depreciation of the peso against the dollar.