Listed canned tuna food firm Century Pacific Food, Inc. on Wednesday said its profit surged 37 percent in 2016 on the back of continued revenue growth and the consolidation of its recently acquired coconut subsidiary.
Its net income reached P2.66 billion last year from P1.94 billion in 2015.
Total revenues grew by 21 percent to P28.29 billion in 2016, supported by a double-digit increase in its branded sales and robust top-line from its growing coconut exports business.
“We continue to benefit from consumers’ increasing demand for affordable, convenient and healthy products,” said CNPF’s Chief Finance Officer Oscar Pobre.
“While fourth quarter was slower than previous periods which benefited from an election bump, our branded businesses have maintained market leadership in core segments and we have likewise gained traction in emerging product categories,” he added.
Meanwhile, the CNPF saw a sustained recovery in demand for original equipment manufacturer tuna exports during the latter part of the year, with revenues in that segment ending the year with positive growth.
Despite commodity headwinds during the latter part of the year, CNPF saw overall profitability -- a 39-percent rise in gross profits and a 32-percent increase in operating income for the full-year 2016.
The company attributed the gains to favorable input costs for most of the year and its inventory hedging strategies.
Last year, CNPF acquired the license to the Kamayan trademark for North America. The brand is one of the top names in the U.S. market for shrimp paste –a popular condiment in Philippine cuisine, locally known as bagoong.
It also acquired distribution companies in China which sell Century Tuna, currently the number one canned tuna brand in China.
The company expects these acquisitions to support the growth of its international branded business, as well as expand its presence into adjacent shelf-stable categories.