Century Pacific Food, Inc. (CNPF), traded on the Philippine Stock Exchange, announced that net income after tax rose 6% to P4.1 billion in the first half of 2026, as consolidated revenue climbed 15% to P45.8 billion.

Second-quarter revenue grew 16% year on year, the listed food manufacturer said in a statement on Thursday.

Stripping out one-off provisions tied to earthquake damage that are subject to insurance claims, core net income increased 10%, while core operating income advanced 18%.

"Our operating conditions in the first half were far from smooth. Fuel prices soared, squeezing our consumers while adding pressure to our operating costs. Against this backdrop, cost discipline became all the more important," CNPF Chief Financial Officer Chad Manapat said.

"We proactively tightened spending while also rolling out measured pricing action well below inflation, aiming to strike a balance between cushioning rising costs and keeping our goods within reach for our consumers," he added.

The company noted that earnings were weighed down by higher finance costs stemming from increased short-term debt and a higher effective tax rate following the expiration of tax incentives.

CNPF's branded business expanded 13% in the first half, accelerating to 14% growth in the second quarter. All branded categories posted gains, led by milk, coconut, and other emerging businesses.

"Majority of CNPF's sales come from the predominantly domestic branded business, comprised of marine, meat, milk, coconut, and other emerging segments. Despite a soft consumer landscape, branded remained resilient, supported by the relevance of its diverse portfolio of affordable staples," the company said.

The original equipment manufacturing (OEM) exports segment grew 26% in the first half and 21% in the second quarter, bolstered by improving tuna export markets and sustained demand for coconut products. The Philippines ranks among the world's largest producers and exporters of coconut products, providing a structural backdrop for that category's sustained demand.

CNPF said its second-quarter results were impacted by the June earthquake in General Santos City, where several of its manufacturing facilities are located. General Santos City is widely known as the tuna capital of the Philippines and serves as a central hub for the country's tuna fishing and processing industry, making it a strategically significant base for CNPF's marine operations.

Gross margin improved by 20 basis points to 25.9% in the first six months, while operating expenses as a percentage of sales also rose 20 basis points. Operating income increased 15%, in line with revenue growth.

The company said it is maintaining its P8-billion capital expenditure program for 2026 despite weaker consumer confidence, elevated operating costs, and geopolitical uncertainties. CNPF expects sustained demand for affordable food products and continued strength in its export business.

CNPF's brand portfolio includes Century Tuna, Argentina, 555, Ligo, and Birch Tree. The company is also a major provider of private-label tuna and coconut products for export.

— Alexandria Grace C. Magno