CANNED-food maker Century Pacific Food Inc. said its income rose 45 percent during the first quarter of the year to P636 million, partly due to strong demand for its branded canned goods and the consolidation of the Po family’s coconut-water business into the company.
The maker of Century Tuna and Argentina Corned Beef said its income rose from last year’s P437.97 million.
Revenues increased 22 percent to P6.4 billion, from last year’s P5.24 billion.
Sales from the three branded businesses on marine, meat and milk food grew by 15 percent year-on-year and accounted for 78 percent of the company’s revenues.
Last year, the company acquired Century Pacific Agricultural Ventures Inc., the coconut-water venture of the Po family, which still owns a significant stake in Century Pacific.
“The domestic economy remains vibrant and our strong market position has allowed us to benefit from increased per-capita consumption. Improved sales distribution and well-executed marketing campaigns have also helped us sustain double-digit growth, enough to offset weakness in our private-label tuna export business, where the global situation remains challenged,” the company’s CFO Oscar Pobre said in a statement.
The company’s first-quarter operating income and earnings before interest, depreciation and amortization amounted to P860 million and P934 million, up by 40 percent and 43 percent, respectively.
“We have built-up good momentum in sales-volume growth, plus subdued raw material prices and hedging strategies have also allowed us to continue our program of investing in our brands,” Pobre said.
The company’s nonbranded segment also saw a boost with the consolidation of CPAVI, which has benefited from the rising global trend towards healthy and organic-coconut products.
“In addition, the company notes improved sales mix and increased contribution from higher margin products, indicating consumer willingness to pay for more premium items,” the company said.
It also cited strong sales performance coming from modern retail chains, as well as convenience stores, which have expanded quickly across the country.