CNPF sees slower earnings growth

MANILA, Philippines — Po family-led food and beverage company Century Pacific Food Inc. (CNPF) expects earnings growth to slow down this year as it absorbs part of the impact of rising costs of raw materials instead of fully passing this on to consumers.

During the PSE Star Investor Day yesterday, a summit co-hosted by the Philippine Stock Exchange (PSE), CNPF executive chairman Christopher Po said the company could see “mid to high single digit growth in earnings” this year.

This would be lower than the 20 percent earnings growth  recorded last year when it posted a net income of P4.7 billion and a revenue growth of 13 percent to P54.7 billion.

Po said CNPF is closely watching the impact of Filipinos’ purchasing power.

The steady flow of dollar remittances, which grew by  3.2 percent in March, is an indicator which would positively impact purchasing power and consumer spending.

He said rising inflation would have a negative impact on prices, which  in turn would cut into the company’s earnings.

Po said, the target is for CNPF to grow by an average compounded annual growth rate of 10 to 15 percent in the next five years and to double the business in the next seven years.

He said CNPF would continue to invest in the business while mitigating the new risks that emerged to deliver decent business results.

The company attributed last year’s strong performance to robust sales of CNPF’s tuna and coconut OEM exports business and the strong performance of the branded segment, composed of marine, meat, milk and other emerging businesses, despite the high base from the year before.

OEM exports increased by 29 percent last year, driven by the global economic reopening and higher demand for healthier products. The company’s branded segment, recorded a double-digit growth of 10 percent.

With an established track record in brand-building spanning more than 40 years, CNPF  has developed a roster of household names which include Century Tuna, Argentina, 555, Angel, and Birch Tree.