Century Pacific stands by P8-9B capex amid headwinds

CENTURY PACIFIC FOOD, Inc. (CNPF) is maintaining its P8-billion to P9-billion capital expenditure (capex) program this year despite weaker consumer confidence, higher operating costs, and geopolitical uncertainties, as the listed food manufacturer bets on sustained demand for affordable food and continued strength in its export business.

“Our capex this year is about P8-9 billion, and we stand firmly behind that capex,” CNPF President and Chief Executive Officer Teodoro Alexander T. Po said during the company’s annual stockholders’ meeting on Tuesday.

The spending program will focus on expanding production capacity for the company’s domestic and export businesses.

Mr. Po said CNPF views demand for affordable nutrition in the Philippines as a long-term structural trend, supported by population growth and rising incomes.

“The capacity we build today to serve that market will be meaningfully larger by the time it comes online,” he said.

A significant portion of this year’s investments will be allocated to the company’s original equipment manufacturer (OEM) export business.

“A big portion of our business, about 25%, is actually exports and dollar-related, and these businesses continue to shine at the moment, and coconut business growth and tuna business growth continue to be strong,” Mr. Po said.

He said CNPF remains committed to expanding capacity for both its export and domestic operations.

“In sum, we are happy to invest continuously in the Philippine growth story, exports and domestic similarly,” he said.

“So, all of these capex are necessary and required… We’ll expect to show the results beginning next year,” he added.

The company said the planned investments will be funded through its balance sheet and operating cash flows.

Despite a more challenging operating environment, CNPF reaffirmed its target of delivering double-digit growth in both revenue and earnings this year.

“It’s been a quite challenging second-quarter but we’re still seeing double digit growth on our business both on the branded and on the OEM side, juxtapose that to our Q1 numbers, where we also delivered double-digit growth,” Executive Chairman Christopher T. Po said.

“With some luck and a lot of work, we still hope to land this plane by the end of the year, delivering double-digit growth,” he added.

Mr. Po said the company expects the second half to perform similarly to, or slightly better than, the first half, supported by increased investments in its brands and easing geopolitical pressures.

“With a lot more investment in our brands, and hopefully with the Iran war effects abating, we will still be able to make the next six months similar or even slightly better than the first six months. So our outlook is for double digit growth, both top line and bottom line for the balance of the year,” he said.

In the first quarter, CNPF’s net income rose 10% to P2.1 billion from P1.91 billion a year earlier, while consolidated revenue increased 15% to P23.25 billion from P19.94 billion.

The company’s OEM export business posted 32% growth during the period, driven by improving tuna market conditions and sustained global demand for coconut products.

In 2025, CNPF’s net income rose 11% to P7.1 billion, while consolidated revenue increased 10% to P83.3 billion, led by its branded food business.

CNPF’s portfolio includes Century Tuna, Argentina, 555, Ligo, and Birch Tree. The company is also one of the country’s leading providers of private-label tuna and coconut products for export.

CNPF shares rose 1.64% to P31 apiece on Tuesday. — Alexandria Grace C. Magno