Century Pacific nets P3.9B in 2020, up 24%

Branded foods maker Century Pacific Food Inc. (CNPF) posted a double-digit bottomline growth in 2020 amid pandemic-related demand spikes for its food products.

In a disclosure to the Philippine Stock Exchange on Wednesday, CNPF reported a net income of P3.9 billion last year, up 24% year-on-year.

The company’s consolidated revenues stood at P48.3 billion, up 19% from a year earlier.

“We saw robust demand for our branded products all throughout 2020 – beginning with a strong pre-COVID 19 performance, followed by pandemic-related demand spikes, then sustained growth to wrap up the year due largely to the essentials and staples nature of our portfolio,” said Christopher Po, executive chairman of CNPF.

“Amidst the uncertainties of 2020, our strong position allowed us to focus primarily on the future improving our digital capabilities, increasing capacities across our value chain, and building up a robust pipeline of innovative and new products. Over the next 12 to 18 months, we look forward to releasing these to market as we persist in our mission of providing affordable nutrition to the Filipino population,” Po said.

For 2021, CNPF is eyeing a double-digit topline and bottomline growth, despite a high 2020 base and continued uncertainty around the COVID-19 pandemic.

The growth target is due largely to resilient demand for the company’s core branded products, recovery in its original equipment manufacturer export business, and increased contribution from new products and emerging categories, the company said.

Starting April 1, 2021, CNPF is adding refrigerated food in its products line with the acquisition of Pacific Meat Company Inc (PMCI) - an emerging player in the large refrigerated food category.

PMCI is a fellow subsidiary of CNPF’s parent company, Century Pacific Group Inc. It has its own manufacturing facilities, cold chain distribution, and a robust innovation pipeline of refrigerated better-for-you products.

It is expected to provide CNPF with growth opportunities in a major segment of the food market.

“We are looking at refrigerated food as another platform for growth and look forward to bringing in PMCI as it has now hit scale and built out a pipeline of new products that will supplement CNPF’s. It will provide capabilities in a completely different food segment which is growing and will have synergies with the shelf-stable part of our portfolio,” Po said.

“Moreover, as a result of this acquisition, all consumer goods businesses of the Po family will consolidate into the listed CNPF, eliminating potential sources of conflict of interest, and improve our overall corporate governance. We believe the terms of the deal are minority shareholder friendly and we’ve undergone a robust process to ensure the transaction is at arms-length,” he added.

Popular household brands under CNPF include Century Tuna, 555, Blue Bay, Argentina, Swift, Angel, and Birch Tree.—AOL, GMA News