PROCESSED food maker Century Pacific Food, Inc. (CNPF) earned a total comprehensive income of P1.43 billion in the second quarter, nearly 19% higher than the P1.21-billion income logged year on year.
The listed company, which manufacture and distributes processed marine, meat, milk, and coconut products, saw its topline for the quarter go up by 4.7% to P13.62 billion from P13.01 billion.
In the first six months, CNPF’s net income grew by 21% to P2.7 billion because of “strong export sales, resilient local demand, and favorable tax rates.” Its exports business posted a 29% growth as global markets reopened.
The company said it benefited from tax rates following the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law on top of the income tax holiday on its new tuna plant. The law lowered the effective income tax rate to 16%.
CNPF Chief Financial Officer Richard S. Manapat said in a statement on Wednesday that the company plans to reinvest the profits in capacity expansion programs and other sustainability initiatives.
The company is expanding its coconut production facility, aiming for a 50% boost in the plant’s capacity. It targets to generate 500 manufacturing jobs by the third quarter.
Meanwhile, CNPF commissioned a 5.2-megawatt solar photovoltaic plant to power its General Santos-based tuna and coconut manufacturing facilities.
Its consolidated revenues went up by eight percent to P27 billion, with branded revenues inching up by three percent year on year.
“We are grateful for this revenue growth following the surge in sales we saw last year,” Mr. Manapat said.
“We see this as a reflection of organic demand, given that pantry loading hasn’t occurred in the same magnitude as 2020,” he added.
The company said that in preparation for the next round of stringent lockdown measures, it “beefed up its inventory covers to ensure food security and business continuity.”
“As we ease into the second half of the year, we acknowledge that we are still very much in uncertain times,” Mr. Manapat said. “We continue to monitor key risks, such as inflationary pressures and forex fluctuations, and we have plans in place to mitigate and hedge ourselves against the potential impact.”
The company will continue to aim for double-digit growth, he added.
“We believe this will be supported by the resilient demand for essentials and consumer staples, continuous growth in our OEM (original equipment manufacturer) exports business, and innovations underway,” Mr. Manapat said.
CNPF shares at the stock exchange declined by 2.72% or 70 centavos to close at P25 each. — Keren Concepcion G. Valmonte