CNPF expects earnings to expand more slowly

25 May 2022

Century Pacific Food Inc. (CNPF), a food and beverage firm founded by the Po family, expects earnings and to expand more growth to stall this year as it absorbs some of the impact of higher raw material costs rather than passing them on fully to consumers.

CNPF executive chairman Christopher Po stated yesterday at the PSE Star Investor Day, a summit co-hosted by the Philippine Stock Exchange (PSE), that the company could experience “mid to high single digit growth in earnings” this year.

This would be lower than the 20% increase in earnings seen previous year, when the company reported a net income of P4.7 billion and revenue of P54.7 billion.

CNPF, according to Po, is keeping a careful eye on the impact of Filipinos’ purchasing power.

The consistent influx of dollar remittances, which increased by 3.2 percent in March, is a sign that purchasing power and consumer expenditure will improve.

He predicted that growing inflation would have a detrimental influence on prices, reducing the company’s earnings.

CNPF’s goal, according to Po, is to expand more at a compound annual growth rate of 10 to 15% in the next five years and to double its business in the next seven.

He stated that CNPF would continue to invest in the business while reducing new risks in order to achieve satisfactory financial performance.

Despite the high base from the year before, the company credited last year’s good performance to robust sales of CNPF’s tuna and coconut OEM exports business, as well as the outstanding success of the branded segment, which includes marine, meat, milk, and other growing industries.

Last year, OEM exports climbed by 29%, owing to the global economic recovery and increased demand for healthy products. The branded component of the business grew by 10% in double digits.

CNPF has built a list of household names, including Century Tuna, Argentina, 555, Angel, and Birch Tree, over the course of more than 40 years of brand development.