A leading Philippine food manufacturer reported an impressive 12% increase in its net profit for the second quarter, reaching P1.9 billion, up from P1.7 billion in the same period last year. This remarkable growth was driven primarily by the company's thriving exports segment.
The company’s revenue for the April-to-June period grew by 10%, rising to P19.59 billion from P17.79 billion last year, according to a regulatory filing released on Wednesday.
For the first half of the year, the company recorded a 14% increase in attributable net income, amounting to P3.63 billion compared to P3.2 billion in 2023. This positive performance was supported by favorable trends in commodity costs.
The manufacturer’s consolidated revenue for January to June saw a 13% rise, reaching P37.74 billion from P33.41 billion last year. This growth was largely attributed to the recovery of its original equipment manufacturer exports.
The majority of the company’s revenue came from its branded business, which includes marine, meat, and milk & other segments, catering mainly to the domestic market. The original equipment manufacturer exports segment, which includes tuna and coconut exports, accounted for about 20% of the company's business.
Export sales soared by 36% compared to the second quarter of last year, leading to a 42% growth rate for the segment over the first six months. This strong rebound was driven by improving commodity costs and favorable foreign exchange market conditions.
Despite a high base, the branded segment achieved a 5% growth rate during the three-month period, amidst a challenging consumer environment, resulting in a 7% year-on-year increase in first-half sales.
Looking ahead, the company remains optimistic, aiming for low double-digit growth in both its top line and bottom line for 2024.
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