Century Tuna maker's net income drops 4% to P2.55 billion in 2017
MANILA, Philippines – Po family-led Century Pacific Food Incorporated, the firm behind Century Tuna, saw its bottom line drop in 2017 due to higher prices for raw materials.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, April 4, Century Pacific reported a net income of P2.55 billion for full-year 2017. The figure is down 4% from the P2.66 billion in 2016.
The firm's earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, remained largely unchanged year-on-year, at just over P3.95 billion.
"Amidst a more challenging input cost environment, our businesses fared relatively well. During this time, we've adopted a more conservative approach towards price increases in the face of inflationary pressures," said Century Pacific chairman Christopher Po in a statement.
"This has helped further solidify our market shares, increase sales volume, and puts us in a good position to benefit once raw material prices soften," he added.
Despite the dip, Century Pacific's revenues increased by 22% year-on-year to P34.5 billion for 2017.
Sales across its 3 units - Marine, Meat, and Milk – grew by 17% to P24.9 billion, while original equipment manufacturer (OEM) sales rose by 34% to P9.6 billion, which the firm attributed to increased export activity and higher average selling prices year-on-year.
Century Pacific's gross profit hit P8.52 billion for 2017, with operating income down 5% to P3.43 billion compared to 2016.
"Though headwinds coming from cost pressures are likely to remain into the early part of 2018, we have already seen softening in the prices of raw materials and look forward to an improvement in margins beginning middle of this year," Po said.
"Meanwhile, we are focused on keeping expenses low and ensuring that our buoyant topline growth continues," he added.
As of end-2017, Century Pacific's net debt-to-equity stood at 0.51x and net gearing at 0.15x. Net interest-bearing debt to EBITDA stood at 0.55x. – Rappler.com