Pabigat! Po bros’ money-losing Chinese subsidiaries continue to bleed Century Foods dry 5 years after takeover

Century Pacific Food (CNPF) has accumulated P150 million in combined losses since it absorbed Century (Shanghai) Trading Co. (CST) and Century International (China) Company (CIC) six years ago.

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Based on its audited financial statement, CNPF absorbed P105 million in losses from 2017 to 2022 from CST, a 17-year old firm engaged in the wholesale, import and export of food, provision of ancillary services, and relevant consulting services.

It also incurred P45 million in net losses from 2017 to 2021 from CIC, a 19-year old firm involved in consultancy and sale of hardware and electrical apparatus, auto spare parts, building decoration materials, telecommunication equipment, stationery commodities, mechanical equipment, pre-packaged food, beverage, and computer software and hardware.

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Aside from losses, CIC’s capital deficit also ballooned by 48 percent to P87 million in 2021 from P58.8 million in 2018.

The two companies based in Pudong New District have been a financial burden to stockholders since they were absorbed by CNPF, now controlled by the sons of the late ultra bilyonaryo Ricardo Po.

CNPF bought 100 percent of CIC and CST for a total of P127 million in 2016 – with their assets valued at P90 million and goodwill at P37 million.

Two years after the takeover, CNPF wrote off the P37 million goodwill from the acquisition of CIC and CST as this was fully impaired after the recoverable value plunged below the carrying value.

“Based on management’s assessment, the projected revenue growth in the coming years is not sufficient to sustain
its operations in the future,” said CNPF in its 2019 financial report.

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