MANILA -- Canned food manufacturer Century Pacific Food Inc. (CNPF) announced that it has earmarked a capital expenditure of up to PHP1.8 billion this year mainly to expand its production capacity and grow the business by 10 to 15 percent.
CNPF Executive Chairman Christopher Po said the company is expanding the capacity of its tuna canning plant in General Santos City.
“We think the efficient scale for a new plant will be between 50 to 100 metric tons of tuna produced a day. Once we finished this plant, it will satisfy our requirements for the next three to five years,” he told reporters on Tuesday after the company’s stockholders’ meeting.
The firm currently processes about 300 to 350 metric tons of tuna a day.
Po said the new plant is expected to be completed by third quarter next year.
He noted the company targets its earnings growing “mid-single digit” this year, as revenues continue increasing by 20 percent.
“Our focus is really the Philippine market, 75 to 80 percent (of our revenues are coming from) domestic market. This year, the branded domestic business is growing faster,” Po said.
CNPF, a leading exporter of original equipment manufacturer (OEM) tuna and coconut products, sells products in 60 countries.
“We sell quite a bit to the EU (European Union), as well as Japan. The Philippines enjoys a duty-free entry into the EU market through the GSP (Generalized System of Preferences) Plus system so that has helped the tuna industry,” he said.
“We also aim to serve the markets that are more stringent in terms of quality but are willing to pay better margin, so that’s part of our strategy when it comes to exporting,” he added.
Its other business segments include marine, meat, and milk and mixes. Among the brands under CNPF are Century Tuna, 555, Argentina and Swift.
The company booked a net income of PHP2.6 billion in 2017, slightly down by 4 percent from PHP2.7 billion the previous year, due mainly to higher raw material prices. (PNA)
