Century Pacific tempers outlook despite export-led Q1 gains

Insider Spotlight

• Century Pacific Food’s first-quarter revenues climbed 15 percent to P23 billion, driven by resilient branded food demand and a recovery in export sales.
• Net income rose 10 percent to P2.1 billion despite higher taxes from expiring incentives and persistent input cost pressures.
• Gross margins narrowed as commodity costs increased, but foreign exchange gains from export revenues helped lift operating margins.
• Management flagged Middle East tensions and elevated costs as key risks while reaffirming plans to sustain double-digit growth.
  
  
  

Century Pacific Food Inc. posted a 10-percent increase in first-quarter net income, as stronger export sales and resilient consumer demand helped offset rising input costs and higher taxes.

The listed food manufacturer said net income after tax reached P2.1 billion in the three months to March, while revenues grew 15 percent year-on-year to P23 billion. Operating income rose 17 percent, broadly in line with topline growth.

Why it matters

The results show how Century Pacific’s portfolio of affordable consumer staples and export-oriented operations continued to provide stability despite a challenging spending environment and mounting geopolitical uncertainty.

Chad Manapat

Chief financial officer, Century Pacific Food Inc.

Driving the numbers

Branded revenues, which account for roughly 80 percent of sales, increased 11 percent as consumers continued to favor affordable and trusted food products amid tighter household budgets.

The company said volume-led growth was supported by demand across its marine, meat, milk and coconut product lines. Recent launches included Blue Bay Corned Tuna and Superbowl by Century Tuna, a ready-to-eat meal targeted at value-conscious consumers.

Meanwhile, original equipment manufacturing export sales surged 32 percent from a year earlier, reflecting improving tuna markets and sustained global demand for coconut products.

Margin pressures persist

Century Pacific said gross margins contracted by 100 basis points to 25.1 percent due to rising input costs.

However, foreign exchange gains from dollar-denominated export revenues helped cushion the impact, contributing to a 20-basis-point expansion in operating margins to 11.9 percent. Cost discipline also reduced operating expenses relative to sales.

Net profit margins softened by 40 basis points to 9.1 percent as the company’s effective tax rate climbed to 19.4 percent from 15.6 percent following the expiration of certain tax incentives.

What they’re saying

“With the ongoing conflict in the Middle East, we are clear-eyed that the months ahead will be marked by headwinds. The aspiration to sustain our double-digit growth momentum remains as we balance the needs of our stakeholders” chief financial officer Chad Manapat said in a press statement on May 7, 2026.

“Our conviction in long-term growth opportunities remains, and we continue to look for opportunities to invest in capacity, technology, supply chain, and the organization,” said Manapat.

The company said it would tighten discretionary spending, carefully manage pricing, and continue investing in capacity, technology and supply chain improvements as it navigates a higher-cost operating environment. —Vanessa Hidalgo | Ed: Corrie S. Narisma