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Filipino tuna group credits brand for earnings growth

Company will continue to invest in emerging categories and new innovations.

Filipino giant Century Pacific Food (CNPF) reported a notable spike in earnings during the first half of 2019, thanks to lower raw material prices, stable operating expenses, and strong brand presence.

In a July 31 regulatory filing with the Philippine Stock Exchange, the company, which counts among its subsidiaries one of the Pacific's largest tuna canning operations, reported earnings before interest, taxes and depreciation (EBITDA) growth of 15 percent year-on-year during the first six months of 2019 to Php 2.8 billion (€551.6 million/$492.8 million).

Through June revenues were at Php 19.6 billion (€3.5 billion/$3.9 billion), with sales growing by 6 percent. The company's brands, including its seafood brands, contributed largely to that growth, the company said.

“During the first six months of the year, we benefited from softer input prices in most parts of the portfolio," CNPF Chief Financial Officer Oscar Pobre. "We also saw a decline in operating expenses due to differences in timing of advertising spend relative to prior period."

The company's operating income during the period increased faster than sales at 14 percent year-on-year, with net profit rising 8.7 percent for the first half of the year to Php 1.7 billion (€299.2 million/$334.9 million).

“For this year, we are maintaining our target to grow earnings by double-digits. While still strengthening our core business of marine and meat, we will also continue to invest in emerging categories and new innovations," he said.

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