Canned food manufacturer Century Pacific Food Inc. is set to rejoin the MSCI Philippine Small Cap Index by May 27, 2021.
CNPF’s recent inclusion was a result of a semi-annual review conducted by MSCI, the leading provider of stock market indices and investment decision tools to clients worldwide, the company said in a disclosure to the stock exchange.
“We are excited about the prospect of attracting more investors to our story,” said Century Pacific chief financial officer Chad Manapat.
CNPF will join the likes of Puregold Price Club, Robinsons Retail Holdings and Megaworld Corp.in the highly tracked index.
CNPF reported a net income of P1.3 billion in the first three months, up 24 percent from P1.04 billion in the same period last year on the back of favorable margins and double-digit topline growth.
Despite a high base last year, first-quarter revenues still ended 11 percent higher, thanks to resilient local demand for the company’s branded products and strong growth in tuna and coconut export businesses.
Consolidated revenues grew 11 percent to P13.4 billion as the branded business, which accounts for majority of total revenues, posted a 4-percent increase.
Operating expenses went up 20 percent on increased new product support.
“Current uncertainties lend well to our growing portfolio of products – composed of a core that is essential and staple, alongside an increasing exposure to premiumizing and emerging categories,” Manapat said.
The company is expanding its coconut facility by close to 50 percent and its meat facility by 20 percent, with further expansions along the way.
Capacity investments are partly supported by profits generated from lower tax rates—brought about by the implementation of the Corporate Recovery and Tax Incentives for Enterprises law.
“Despite continued uncertainties and expectations of increased raw material costs, our strong start puts us in a good position to meet or, potentially, even exceed our original earnings growth target of 10 to 15 percent this year –thanks in part to the benefits of CREATE,” said Manapat.
Shares of CNPF rose 3.2 percent Wednesday to close at P22.50.