Po family-led local food canning giant Century Pacific Food Inc. (CNPF) grew its 2019 net profit by 11 percent to P3.1 billion, driven by the double-digit growth in its branded food business.
Consolidated revenues rose by 7 percent last year to P40.6 billion as the branded business made up for the slack in the commodity-linked segments , CNPF disclosed to the Philippine Stock Exchange.
The branded business – comprised of the marine, meat and milk business units – boosted sales revenues by 12 percent last year to P31.2 billion. This accounted for 77 percent of overall revenues.
Century Pacific’s consumer brands include Century Tuna, Argentina, 555, Swift, Birch Tree Fortified Milk, Angel Milk, Fresca, Wow Ulam, Hunt’s and Coco Mama.
The commodity-linked tuna and coconut businesses, on the other hand, saw a 6 percent drop in sales due to the downturn in global commodity prices. These segments accounted for 23 percent of CNPF’s revenues.
Consolidated gross profit outpaced the growth in sales at 20 percent. This translated to a 250-basis point rise in overall gross profit margin to 24 percent.
The improvement in gross profit allowed the company to invest more heavily in brands, new product development, and innovations, leading to an increase in operating expense of 13 percent, CNPF said.
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