Century Pacific Q2 profit grows 8% y/y, and up 10% q/q
Century Pacific [CNPF 24.50 4.93%] [link] posted a Q2/22 profit of P1.54 billion, up 8% from Q2/21 profit of P1.43 billion, and up 10% from Q1/22 profit of P1.41 billion.
First half results showed CNPF’s consolidated net revenue was up 15% y/y to P31.1 billion, and despite higher input prices due to inflation and supply chain issues, CNPF saw its gross margins grow by 20 basis points to 25.1%.
Its H1/22 net profit of P3 billion was 9% higher than H1/21.
CNPF’s largest business segment, the branded business, grew sales by over 18% in the first half of the year, while the Tuna and Coconut OEM Exports segment grew 6%, due in large part to forex pricing benefits and the easing of some supply chain issues.
Looking forward, CNPF’s Executive Chairman, Christopher Po, said that the company expects to see lower prices for some of its key inputs, “like tuna, packaging, and freight.”
MB BOTTOM-LINE
The company looks poised to deliver yet another year of increased profitability, as earnings per share have grown from P0.72 in 2017 to P1.32 in 2021.
If we do some rough math and annualize their H1 results, we can see that if they maintain the pace they set, they’d deliver an EPS of P1.67 for 2022.
That’s an incredible 27% y/y growth.
Now, there’s a lot of life between now and then, and a lot of things can push and drag CNPF’s earnings, but it seems like CNPF is doing a great job of consistently delivering earnings growth in a hyper-competitive market.
It’s not like they’re just squatting on dominated markets, either; the group is making educated bets in new product areas to build future shareholder value.
There was a time when I was dismissive of what the Po Family had accomplished, especially during the pandemic when the rush to shelf-stable products really boosted CNPF’s bottom line, but I think we’re seeing that the force majeure windfall of the pandemic was just a layer of good fortune for CNPF shareholders that rested on top of a powerful upward trend that existed both before and after the depths of the pandemic.
--
Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
- Latest
