Leading canned food producer Century Pacific Food Inc. (CNPF) of the Po family is watering down its spending plans to fight rising inflation and improve profitability.
In a press briefing, CNPF chairman Chris Po said the company has scaled down its capital budget for this year by a fifth to P2 billion amid a spike in costs.
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Po said CNPF has “downshifted a bit” on introducing new products and is instead “supporting innovations launched in the last 18 to 24 months.”
“So we are saving some bullets now for the future when maybe the inflationary pressures are less felt. And we are definitely doing belt tightening, undertaken cost efficiency measures during the last two years of the pandemic. But to the extent that we have some more room to tighten our belts, we are doing that in order to shore up our our bottom line,” Po said.
Nevertheless, Po is confident CNPF will achieve a double-digit growth in its topline despite inflationary pressures which could weigh on consumers’ purchasing power.
“We expect this to be supported by a resilient demand, innovations, expansion and strategic price increases,” he said.