Century Pacific Foods, Inc: First Take: Pricing Power and Resilient Demand Keep the Pantry Stocked, In-Line 2Q26 results

研报英文原文证据摘录

J P M O R G A N

Asia Pacific Equity Research

06 August 2026

Century Pacific Foods, Inc

First Take: Pricing Power and Resilient Demand Keep

the Pantry Stocked, In-Line 2Q26 results

Our First Take: CNPF disclosed a 2Q26 core net income of Php2.2bn (+11% y/y,

6% q/q), bringing 1H26 figure to Php4.3bn or up by 11% y/y. The core net income

is without the one-off provision made for the earthquake-related inventory losses

and facility damage subject to insurance claims. The 2Q26 results are in line with

Street FY26E at 57% but ahead of JPMe’s (61%) more conservative forecast. The

variance was driven by better-than-expected GPM and OPM delivery, supported

by pricing actions in May (+4-5%) and sustained mid-teens topline growth. CNPF

is optimistic that it can meet its full-year FY26E targets of low to mid-teens topline

growth and low DD core net income growth.

Overweight

CNPF.PS, CNPF PM

Price (06 Aug 26):Php32.10

Price Target (Jun-27):Php35.50

Strategy, Real Estate, Consumer,

and Conglomerates

Jeanette Yutan AC

(63-2) 8878-1188

Key Positives

Consumer Staples

Revenue growth momentum carried into 2Q26. CNPF consolidated revenues

grew by 15.5% y/y to Php22.8bn, bringing 1H26 to Php45.8bn or +15% y/y.

Branded segment revenue growth accelerated to 14% y/y in 2Q26 from 11% y/y

due to the 4-5% price hikes in May and DD volume growth. Milk and Other

Emerging segments led the growth with high teens growth. Milk market share

improved by 50bps from end-2025 to end-June 2026 as Birch Tree benefited from

consumer downtrading. OEM revenue recovery continued in 2Q26 with a 21% y/y

growth, albeit slower sequentially due to the earthquake impact; the growth was

supported by mid-20% coconut revenue growth.

Nadine Bautista, CFA

(63-2) 8554-2478

J.P. Morgan Securities Philippines, Inc.

GPM finally expanded in 1Q26 by 146bps y/y to 26.7%, halting the four

consecutive quarters of compression. 1H26 GPM stood at 25.9%, slightly better

than 1H25’s 25.7%. The drivers were the 4-5% pricing actions taken in May, and

sustained mid-teens topline growth. Impact of the weaker PHP was also mitigated

by the high 20s revenue growth in OEM. CNPF also benefited from its aggressive

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