Century Pacific profit grows 21% in H1

Canned and processed foods maker Century Pacific Food Inc. saw a double-digit net profit growth during the first half of 2021 on the back of strong export sales, resilient local demand, and favorable tax rates.

In a disclosure to the Philippine Stock Exchange, Century Pacific reported a net income of P2.7 billion in the January to June period, up 21% year-on-year.

Consolidated revenues stood at P27 billion, up by 8% primarily driven by the double-digit growth in the company’s original equipment manufacturer (OEM) exports business, which grew by 29% year-on-year as a result of the continuous reopening of global markets.

Century Pacific’s branded revenues also saw a 3% year-on-year growth, notwithstanding spikes in demand due to strict lockdowns imposed in the first half of 2020.

“We are grateful for this revenue growth following the surge in sales we saw last year. We see this as a reflection of organic demand, given that pantry loading hasn’t occurred in the same magnitude as 2020,” said Chad Manapat, Century Pacific’s chief financial officer.

The company said it also benefited from favorable tax rates due to the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law and an income tax holiday on its new tuna plant, lowering effective income tax rates to 16%.

It said profits will be reinvested in capacity expansion programs, sustainability initiatives, and upcoming innovations.

Century is currently expanding its coconut production facility to boost the plant’s capacity by 50%.

This is expected to go online in the third quarter of the year, generating 500 quality manufacturing jobs.

“We are pleased to share positive results for the first half of the year. That said, 2021 isn’t over yet. We remain cautiously optimistic as we navigate through the rest of the year,” Manapat said.

With another round of strict lockdowns imposed due to control the spread of COVID-19 Delta variant, Century Pacific said it beefed up its inventory covers to ensure food security and business continuity.

“We continue to work towards double-digit growth, and we believe this will be supported by the resilient demand for essentials and consumer staples, continuous growth in our OEM exports business, and innovations underway,” Manapat said.

“Taken together with the boost from CREATE, we are looking to end the year with a double-digit bottomline growth as well. Overall, despite the uncertainties of the times, Century Pacific remains committed to deliver long-term sustainable growth as we further build our portfolio of brands, strengthen our capabilities, and ultimately serve our consumers’ need for affordable nutrition,” he said.

Century Pacific is the company behind household brands Century Tuna, 555, Blue Bay, Swift, Birch Tree, Argentina, Angel, and Wow.—AOL, GMA News