Resilient Volume Growth Cushions Cost Headwinds
- 1Q26 Unaudited consolidated revenues up 15% year-on-year (YoY) on sustained demand in Branded and continued OEM Exports recovery.
- Branded revenues increased by 11%, reflecting a volume-led growth due to resilient demand for affordable food options and trusted brands.
- OEM Export sales posted a 32% improvement from the same period last year, continuing the segment’s path to recovery.
- Rising input costs led gross margins to contract by 100bps to 25.1%. This was offset by forex gains from CNPF’s dollar-denominated export revenues, leading operating margins to expand by 20bps to 11.9%.
- Operating income rose 17% YoY, while net income after tax (NIAT) improved by 10%, reflecting higher effective tax rates from expiring tax incentives.
Century Pacific Food, Inc. (PSE:CNPF) released its unaudited results for the first quarter of 2026. Against a backdrop of elevated uncertainty, the company delivered consolidated revenues amounting to Php 23.0 billion, representing a 15% growth rate from the same period last year. Operating income improved by 17% YoY, nearly in lockstep with sales. Net income after tax was recorded at Php 2.1 billion, up 10% versus 1Q25.
As one of the leading food companies in the Philippines, CNPF has a portfolio built on everyday essentials and staples, focused on affordable and more nutritious food options catering to a broad consumer base. Approximately 80% of its revenues come from the Branded Segment, comprised of Marine, Meat, Milk, Coconut, and other emerging categories. Original Equipment Manufacturing (OEM) Exports in Tuna and Coconut comprise the rest of its sales.
CNPF’s first quarter sales growth was supported by both segments. Branded sustained its volume-led growth momentum from 2025, delivering an 11% uplift YoY supported by continuous consumer demand for value for money goods and trusted brands amidst a challenged consumer landscape.
Meanwhile, OEM Exports posted a robust recovery from prior year lows with a 32% jump, supported by gradually improving tuna markets and sustained global demand for coconut products.
Chad Manapat, CNPF Chief Financial Officer, said, “We are deeply grateful to be able to deliver decent results in 1Q26. It has not been an easy environment, especially for the Filipino household. This is why we widened our value for money offerings, leaned into convenience, and worked to keep our products accessible during the quarter. We are humbled that in these difficult times, our consumers continue to reach for our brands.”
As part of its strategy to offer more value for money options to consumers, CNPF launched Blue Bay Corned Tuna in 1Q26. Another recent innovation is Superbowl by Century Tuna, a ready-to-eat meal complete with protein and rice at an accessible price point, designed for consumers on-the-go.
In terms of profitability, CNPF’s resilient business model, with its dollar-denominated export revenues, served as a natural hedge against rising input costs. While gross margin compressed by 100 basis points to 25.1%, this was offset by gains from a favorable forex, which expanded other income as a percentage of sales by 110bps. Combined with cost discipline lowering operating expenses to sales by 10bps, operating margins expanded by 20bps to 11.9% YoY.
The flowthrough of CNPF’s solid operating performance into NIAT was tempered by the uptick in the effective tax rates from 15.6% to 19.4% due to expiring tax incentives. Hence, NIAT improved by 10% YOY to Php 2.1 billion, with net profit margins softening by 40bps to 9.1%.
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Manapat shared, “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. 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.”
“Near-term, we are proactively navigating the unpredictability of the situation to ensure that we mitigate the impact to the extent possible. This means a heavier hand in slashing discretionary costs, operating with a multi-scenario playbook, and managing our pricing carefully to balance affordability with the realities of a higher cost environment. We continue to invest in our value segment to ensure meaningful options are available at every price point. In times like these, our mission to deliver affordable nutrition rings truer than ever, and this is what drives us to do more for the Filipino family,” he concludes.
