Century Pacific Food Inc. expects net income to grow by mid-to-high single digit this year, slower than the 20-percent expansion posted in 2021, over rising costs, a top executive said Tuesday.
CNPF executive chairman Christopher Po said in an investor forum hosted by the Philippine Stock Exchange while revenues were expected to grow by low double-digit, the company anticipated a 15-percent to 20-percent increase in costs over rising prices of raw materials and fuel.
Po said the company passed on to consumers the increase in costs, but the price adjustments were implemented gradually or in tranches so as not to shock customers.
He said revenues were expected to remain resilient as the company’s main products, which are canned tuna and canned meats, are considered essential items in Filipino households.
CNPF registered a net income of P1.4 billion in the first quarter, up 10 percent from the same period last year.
First-quarter revenues also climbed 10 percent to P14.7 billion on strong performance of branded food segment, which is composed of marine, meat, milk and other emerging businesses.
Po said that in the face of staggering price increases, the company implemented measures to manage cost pressures such as hedging and managing sales mix to sell more high-margin products.
He said the company would also launch fewer product innovations this year to manage expenses.
Po expressed confidence the purchasing power of consumers would catch up with the increasing prices of basic commodities to sustain demand.
He said despite the challenging business environment, the company is expected to perform strongly over the next five years.
“Our goal has been to grow the company two times the GDP [gross domestic product growth] which will double the size of the company over the next five years,” Po said.
The share price of CNPF rose 0.23 percent Tuesday to P21.65.