Century Pacific Food Inc. plans to double its net income and revenues over the next five years through organic growth and acquisitions.
CNPF executive chairman Christopher Po said in an interview Monday following the annual stockholders’ meeting the company saw the business growing two times that of the country’s gross domestic product, or about 10 percent to 15 percent annually over the next five years.
The company expects net income this year to grow by double digits with the launching of three new products to the market.
“A growing middle class, urbanization, premiumization and consumer preference for healthier lifestyles are some of the long term trends that have provided tailwinds for us to achieve this and will continue to do so over the next few years,” Po said.
Revenues are expected to grow by double digits this year with the group’s branded food business driving the expansion.
Po said the company would be more aggressive with product launches after being conservative in the past two years.
“Now the innovation pipeline is reloaded and we are ready, earmarking a number of key product launches this 2019,” Po said.
CNPF in the first half of the year launched two new products in the market—Argentina corned tuna and Birch Tree choco—which have surpassed the group’s expectations. It plans to launch a third new product in the next couple of months.
Po said the new products would fuel the growth of the company and strengthen the overall business over the next couple of years.
The company, meanwhile, is looking for acquisitions.
“Any food category that is adjacent to our current categories and any product that could capitalize on know-how and expertise is a fair game,” Po said.
The company this year is spending P2 billion for capacity expansion, replacement, and maintenance capital expenditures, as well as efficiency capex.
The company is also poised to complete by the last quarter of the year a new tuna facility in General Santos City. The plant has the capacity to process 100 metric ton of tuna daily.
The company’s marine business accounts for 32 percent of the total business, while the meat and milk businesses contributes about 25 percent and 18 percent, respectively.