Century Pacific Food (CNPF) Q2 2025 earnings summary

Executive summary

• Total revenues for 1H25 reached PHP39.7B, up 5% year-over-year, driven by a resilient branded segment with 9% growth, offsetting a 10% decline in OEM revenues.

• Net income after tax for the six months ended June 30, 2025, reached PHP3.9B, up 7% year-over-year, with net margin improving by 20bps to 9.8%.

• Branded segment sales grew 9% year-over-year, driven by double-digit volume growth in Marine, Meat, and Milk & Emerging segments, supported by sustained brand-building initiatives.

• OEM revenues declined 10% year-over-year due to normalizing tuna prices, a high base from the previous year, and global macroeconomic uncertainty.

• Gross margin contracted by 40bps to 25.7% due to higher input costs, but net profit margin improved.

Financial highlights

• Gross profit increased 4% year-over-year to PHP10.2B, but gross margin softened by 40bps to 25.7% due to higher input costs.

• Operating income rose 9% to PHP4.9B, while EBITDA grew 8% to PHP5.8B.

• Earnings per share increased 7% to PHP1.10.

• Opex to sales ratio improved by 60bps to 13.9% due to disciplined spending.

• Cash and cash equivalents stood at PHP1.7B as of June 30, 2025.

Outlook and guidance

• 2025 topline expected to see high single to low double-digit growth, led by branded segment resilience and improving consumer landscape.

• Margin pressures from higher input costs anticipated, but mitigated by moderated opex spending.

• Capex guidance for 2025 set at PHP4B.

• Growth in 2H25 expected to accelerate for both topline and bottomline.

• OEM Exports segment faces ongoing challenges from commodity cycles and global macroeconomic conditions.