Century Pacific Food, Inc. (PSE: CNPF), one of the biggest food companies in the Philippines, recently shared their business performance for the first six months of 2026. According to their press release filed with the Philippine Stock Exchange, the company managed to grow their sales by 15% even though they faced several challenges during this period.

Understanding the Numbers: What Does 15% Revenue Growth Mean?

Think of revenue as all the money a company makes from selling their products. Century Pacific earned Php 45.8 billion in the first half of 2026. To understand how good this is, they compare it to the same period last year (that’s what “year-on-year” or “YoY” means). Their 15% growth means they sold 15% more compared to last year – like if you had 100 pesos last year, now you have 115 pesos.

The company’s “core net income after tax” (the actual profit they keep after paying all expenses and taxes, excluding special one-time costs) grew by 10% to reach strong levels, though the exact figure was affected by some temporary problems we’ll explain later.

The Two Engines Driving Century Pacific’s Growth

Century Pacific explains that their business works like a vehicle with two engines – they call it their “dual-engine portfolio.”

Engine #1: Branded Products (13% Growth)

This is the bigger engine, making up most of their sales. These are products you probably see in your home or at the grocery store with familiar brand names like Century Tuna, Argentina corned beef, 555 sardines, Ligo sardines, and Birch Tree milk. This segment grew 13% in the first half of 2026.

Even though many Filipino families were being careful with their money (what the company calls a “soft consumer landscape”), people still bought Century Pacific’s products because they offer affordable everyday food items. The milk, coconut, and newer products sold especially well.

Engine #2: OEM Exports (26% Growth)

OEM stands for “Original Equipment Manufacturer.” This means Century Pacific makes tuna and coconut products for other companies abroad who put their own brand names on them. Think of it like making cookies that another store sells under their name. This part of the business grew even faster at 26% for the first half of the year.

However, an earthquake hit General Santos in June 2026, where some of their factories are located. This slowed down their growth in the second quarter to 21%, though it was still quite strong.

Dealing with Rising Costs

Chad Manapat, the company’s Chief Financial Officer (the person in charge of managing money), explained that the first half of 2026 was challenging. Fuel prices went up significantly, which meant two problems: families had less money to spend on groceries, and it cost Century Pacific more money to make and deliver their products.

To handle this, the company carefully watched their spending and slightly increased their prices, but kept the increases much lower than overall inflation (the general increase in prices of everything). They tried to balance keeping their products affordable while covering their rising costs.

What About Profits?

The company’s “gross margin” (how much money they keep from each sale before other expenses) improved slightly by 20 basis points. A basis point is 1/100th of a percent, so this is a small but positive improvement. However, their operating expenses also increased by the same amount, so these balanced out.

The company’s headline net income after tax was Php 4.1 billion, growing 6% compared to last year. However, this included special costs from the earthquake damage. When excluding these one-time costs related to damaged inventory and facilities (which they expect insurance to cover eventually), their core net income actually grew 10% year-on-year.

The company also had to pay more in taxes because some of their tax incentives expired, and they paid more interest on borrowed money.

Strong Financial Health

Despite the challenges, Century Pacific maintained a healthy balance sheet (a financial report showing what a company owns and owes). Their gearing ratio stood at 0.33x and net gearing ratio at 0.28x. These numbers measure how much debt a company has compared to its equity – lower numbers generally mean the company is in good financial shape and not overly burdened by debt.

Recognition and Future Plans

Century Pacific was recently recognized as one of Asia’s Best Companies 2026 by FinanceAsia, winning the gold award for Best Managed Consumer Staples Company in the Philippines. This award was voted on by investors and analysts who follow the company.

Looking ahead, the company plans to invest approximately Php 8 billion in capital expenditures for 2026 – double what they typically spend each year. This money will go toward expanding their manufacturing capacity across different businesses. According to Manapat, this large investment shows their confidence in future growth.

Their near-term priorities include building up inventory to ensure food security, controlling spending carefully, and offering good value products to consumers who are watching their budgets closely.

About Century Pacific Food

Century Pacific Food, Inc. has been building food brands for over 40 years. The company makes and sells processed fish, meat, milk, coconut, plant-based products, and even pet food. Besides their well-known local brands, they also manufacture private label products (products made for other companies’ brands) for export to other countries, particularly tuna and coconut products.

This article is based on the company’s official press release and disclosures filed with the Philippine Stock Exchange’s Electronic Disclosure Generation Technology (PSE EDGE) system. For the complete and official version of the announcement, readers may visit the PSE EDGE website and search for the company’s filing directly.