Century Pacific Food (CNPF) Q1 2025 earnings summary

Executive summary

• Achieved 10% year-over-year revenue growth in 1Q25, reaching PHP19.94B, led by a 13% increase in branded segment revenues and resilient OEM performance despite a 2% decline.

• Net income after tax for Q1 2025 reached PHP1.9B, up 11% year-over-year, supported by disciplined spending and favorable input costs.

• Gross margin improved by 10bps to 26.2%, reflecting cost management and easing inflation.

• EBITDA margin was sustained at 14.0%, and net profit margin remained stable at 9.6%.

Financial highlights

• Branded revenues grew 13% year-over-year to PHP16.1B, driven by volume-led growth and brand-building initiatives.

• OEM revenues were PHP3.8B, down 2% year-over-year but improved 10% sequentially due to higher commodity prices.

• EBITDA increased 8% year-over-year to PHP2.8B; EBITDA margin slightly dipped by 20bps to 14.0% due to forex movements.

• Earnings per share rose 11% to PHP0.54.

• Cash and cash equivalents stood at PHP2.87B as of March 31, 2025.

Outlook and guidance

• Management targets 10–15% topline and bottomline growth for 2025, supported by a diversified portfolio and improving consumer sentiment.

• Margin pressures from higher input costs are expected to be offset by managed operating expenses.

• 2025 capex guidance set at PHP3–4B to support capacity expansion.

• Capacity expansion in coconut processing is expected to generate over 1,500 jobs in Mindanao.

• Cash is earmarked for planned capital expenditures for the year.