Century Pacific optimistic to end 2020 with at least 20% growth

Century Pacific Food Inc. (CNPF) is set to end the year with at least 20% growth in both its top and bottom-line figures, given the surge in demand for its products amid quarantines imposed to curb the spread of the coronavirus disease 2019 (COVID-19) pandemic.

According to CNPF corporate finance and investor relations analyst Leigh Raymundo, the company is banking on the sustained growth of its core businesses, with its net income up by double digits in the third quarter of the year.

In the July to September period, CNPF reported a total comprehensive income of P1.031 billion versus the P897.849 million last year, while gross profit rose to P3.118 billion from P2.7318 billion in 2019. Year-to-date, income rose to P3.276 billion from P2.591 billion, as gross profit climbed to P9.442 billion from P7.402 billion.

"This year given the stellar performance of the company, the guidance for 2020 is low 20s and then for 2021 we are still aiming for double-digit growth at least within the usual range of 10 to 15% ideally," Raymundo said in an online interview.

"We think that we can sustain that because the main growth drivers are our core businesses — so marine meat, milk has a lot of innovations again in the pipeline. On top of that, we also expect our export business to recover this year," she added.

CNPF's main business segments are the canned and processed fish segment which produces tuna, sardines, and other fish and seafood-based products; the canned meat segment which produces corned beef, meat loaf, luncheon meat, and other meat-based products; and the dairy and mixes segment comprised of canned milk, powdered milk, and other dairy products as well as coffee mixes and flavor mixes.

It also has a tuna export segment which produces private label canned, pouched, and frozen tuna products for export, and the coconut segment which produces retail-packaged coconut water, organic vegan coconut oil, desiccated coconuts, coconut flour, and coconut milk.

Among its brands are Century Tuna, 555, Blue Bay, Fresca, Lucky Seven, Argentina, Swift, Shanghai, Wow, Angel, Birch Tree, Kaffe de Oro, and Home Pride.

In a regulatory filing on Wednesday, CNPF said it has also agreed to extend and expand its $165-million long-term agreement as the original equipment manufacturer for Vita Coco, a leading coconut water brand.

"The extension of our long term agreement with the global leader in packaged coconut water is proof positive that both parties are fully confident that, together, we will continue on the growth trajectory we have seen over the last few years into the foreseeable future," Noel Tempongko, vice-president and general manager of Century Pacific’s coconut business, said in a disclosure to the local bourse.

For next year, CNPF is set to invest P300 million more to increase manufacturing capacity to address the growing global demand for coconut products.

"In addition to the future business potential, we are honored to sign this agreement with Vita Coco because of the many corporate values we share. These include our desire to provide better nourishment for consumers, pursue continuous improvement in the manufacturing process, and further support local coconut farming communities," Tempongko said.

In the same interview, CNPF said it plans to expand its corporate social responsibility (CSR) program Kain Po, which serves as a soup kitchen for the communities that distributes some 5 million meals to target beneficiaries annually, primarily students.

Given the quarantines and the suspension of face-to-face classes, CNPF said Kain Po has been expanded in partnership with the Department of Social Welfare and Development (DSWD), several local government units, and non-government organizations (NGOs) that have the same advocacy targeting hunger and malnutrition.—AOL, GMA News