Century Pacific Food, Inc. (CNPF), one of the leading branded food and beverage companies in the Philippines, has released its full year 2022 unaudited financial results with sales climbing up by 14 percent.
CNPF is the makers of Philippines’s famous shelf-stable marine, meat, milk, coconut, and plant-based products that are also available in the Middle East.
It is known for the Philippines’ famous tuna (Century Tuna, 555, Blue Bay), corned beef (Argentina, 555 Carne Norte, Argentina Meat Loaf, Argentina Beef Loaf), liquid and powdered milk (Angel Evaporada/Condensada, Birch Tree Filled Milk, and Birch Tree Powdered Milk) and unMEAT, it’s very own plant-based meat.
In a statement released on Tuesday, it revealed that its net income increased by six percent, impacted by inflationary pressures on the cost side.
In 2022, the Company achieved Php 62.2 billion in consolidated revenues. The segment, which is composed of Marine, Meat, Milk, and other emerging businesses, grew by 16% while OEM exports business posted a 4% increase on top of its high base from the previous year.
According to Chad Manapat, CNPF’s Chief Finance Officer, “Century’s all-weather portfolio did much of the heavy lifting in 2022, whether from a topline or gross margin perspective. On the sales side, our affordable and accessible brands like Fresca and Lucky 7 allowed the company to serve the needs of value-seeking consumers, especially during an inflationary time. We saw local demand remain resilient in a year where more Filipinos gained employment because of the reopening. We recognize that consumers had to prioritize spending and are humbled to see that they continue to patronize our brands, leading to double-digit growth.”
“On the profitability side, because of the Branded segment’s outperformance, we saw a favorable mix impact, which allowed us to sustain gross margins in 2022,” Manapat added.
Amid rising input costs, CNPF’s gross margin landed at 23.1 percent for the year, softening by 20 basis points compared to the prior year.
However, the company also saw higher logistics costs for the year. Thus, operating expenses as a percentage of sales increased to 14.0 percent, leading earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow by six percent in 2022.
Meanwhile, operating cashflows amounted to Php 2.3 billion for the year. The Company was able to maintain a healthy balance sheet at the end of 2022, with Net gearing ratio at 0.20x and net interest-bearing liabilities to EBITDA at 0.75x.
“We have been navigating through choppy waters for quite some time but have been fortunate enough to deliver a consistent growth performance year-on-year. Our strong cash generation allows us to continuously fuel long-term growth, invest in sustainability, and provide our shareholders with satisfactory returns,” said Manapat in a release.
In 2022, CNPF spent Php 1.4 billion in capital expenditures, completing the 50% expansion of its coconut OEM facility.
Moreover, the company announced the completion of its initiative, in partnership with GCash, to plant 1 million coconut trees and donate these to smallholder coconut farmers in Mindanao.
During the year, CNPF in partnership with RSPo Foundation, celebrated the 12th anniversary of Kain Po, its flagship feeding program. Through Kain Po, the group was able to deliver a milestone 10 million protein servings to over 300 thousand beneficiaries nationwide in 2022. CNPF also partnered with Gawad Kalinga to form the Zero Hunger Alliance, a coalition of organizations that seeks to help alleviate hunger in the Philippines, in line with the United Nations Sustainable Development Goals.
Manapat shared, “The financial performance in 2022 was a result of CNPF’s all-weather and resilience-focused business model. We approach 2023 with cautious optimism – focused on delivering topline and bottomline growth but cognizant of our consumers’ plight, considering persistent inflationary pressures. We have some inventory overhang from 2022, which may cause bottomline to lag in the first half but expect margin improvements as commodities ease. While we still see uncertainties marring the landscape, we continue to navigate and adapt to create value for our stakeholders and remain resolute in our mission to deliver affordable nutrition to Filipino families.”
