Century Pacific Food (CNPF) Q3 2024 earnings summary

Executive summary

• Revenue grew 13% year-over-year to PHP 56.9B for 9M24, driven by OEM recovery and resilient branded segment performance.

• Net income increased 14% year-over-year to PHP 5.3B, with gross margin expanding by 240bps to 26.6%.

• Branded revenues rose 6% year-over-year, while OEM revenues surged 43% year-over-year, reflecting strong demand and commodity easing.

• Margin gains were reinvested in operating expenses to support demand generation and market share.

• Gross margin expanded by 310bps in Q3, driven by improved input costs.

Financial highlights

• Gross profit up 24% year-over-year to PHP 15.2B; EBITDA up 11% to PHP 7.8B.

• Operating income increased 12% to PHP 6.5B; EPS up 14% to PHP 1.49.

• Net margin improved to 9.3%; operating expenses rose 31% year-over-year.

• Cash conversion cycle stable at 95 days; free cash flow at PHP 2.8B.

• Total stockholders’ equity grew to PHP 34.7B from PHP 32.9B at end-2023.

Outlook and guidance

• 2024 topline and bottomline growth expected in the low to mid-teens, supported by resilient demand and OEM recovery.

• 2025 preliminary outlook projects 10-15% growth for both topline and bottomline.

• Capex guidance for 2024 close to PHP 3B, mainly for coconut facility expansion.

• Branded business continues to show consistent growth despite inflationary pressures.

• OEM Exports expected to remain a key growth driver, supported by favorable cost and forex trends.