CENTURY Pacific Food, Inc. (CNPF) reported a net income of P3.9 billion for 2020, an increase of 24% year on year, with its branded business segment driving revenues higher.
The listed food manufacturer disclosed in a regulatory filing on Wednesday that its consolidated revenues for 2020 rose 19% year on year to P48.3 billion on the back of its branded business, which posted a 25% sales increase.
CNPF said its branded products, which includes marine, meat, and milk units, accounted for 81% of the company’s total topline last year.
The remaining 19% of the company’s topline for 2020 came from its commodity-linked OEM export business, which posted a 1% decline year on year due to weaker commodity prices, change of capacity to domestic requirements, and a stronger Philippine peso.
CNPF Executive Chairman Christopher T. Po said the company saw strong demand for its branded products in 2020 despite the coronavirus disease 2019 (COVID-19) pandemic.
“Amidst the uncertainties of 2020, our strong position allowed us to focus primarily on the future, improving our digital capabilities, increasing capacities across our value chain, and building up a robust pipeline of innovative and new products,” Mr. Po was quoted as saying.
“Over the next 12 to 18 months, we look forward to releasing these to market as we persist in our mission of providing affordable nutrition to the Filipino population,” he added.
In the last two years, the company launched new products such as Coco Mama Fresh Gata, its first venture into the branded coconut business; Birch Tree Adult Fortified Boost for its milk brand; and unMeat which signaled its entry into plant-based products.
PACIFIC MEAT ACQUISITION FOR P650M
CNPF announced in a separate disclosure that it acquired 100% of Pacific Meat Co., Inc. (PMCI) from its parent company Century Pacific Group, Inc. in a bid to enter the refrigerated food segment.
It disclosed that starting April 1, the company’s emerging categories will include refrigerated food after its acquisition of PMCI, which is a player in the large refrigerated food category.
“Total consideration for 100% of PMCI is P650 million, which is less than PMCI’s book value and 2020 sales. CNPF will also be acquiring P275 million worth of inventory,” the disclosure said.
CNPF said the acquisition of PMCI is expected to produce opportunities since the latter is equipped with its own manufacturing facilities, local cold chain distribution, and a strong innovation pipeline of refrigerated products.
According to Mr. Po, CNPF is seeing the refrigerated food category as another opportunity for growth, adding that PMCI will broaden the company’s capabilities in a major segment of the food market.
“We are looking at refrigerated food as another platform for growth and look forward to bringing in PMCI as it has now hit scale and built out a pipeline of new products that will supplement CNPF’s. It will provide capabilities in a completely different food segment, which is growing and will have synergies with the shelf-stable part of our portfolio,” Mr. Po said.
“Moreover, as a result of this acquisition, all consumer good businesses of the Po family will consolidate into the listed CNPF, eliminating potential sources of conflict of interest, and improve our overall corporate governance,” he added.
In a separate regulatory filing, CNPF also announced that its board of directors approved the company’s cash dividend this year, at 36 centavos per share.
On Wednesday, shares of CNPF at the stock exchange climbed 0.58% or 10 centavos to end at P17.30 each. — Revin Mikhael D. Ochave
