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Philippines: Canned goods maker wins, convenience store loses from quarantine
MANILA, Philippines — The Philippines’ largest canned goods manufacturer is gaining some windfall from home-stay consumers during the community quarantine, but some retailers that sell them not so much.
In a statement to Philstar.com last Friday, Century Pacific Foods Inc. said it sees some “upside to our usual 10-15% annual growth goals” in profits this year as Filipinos stuck at home stock up on food with longer shelf life to avoid going out as much as possible, following government orders.
Last year, the company, which manufactures the Century Tuna brand, together with Argentina corned beef and 555 sardines among others, grew its net income by 11% year-on-year to P3.1 billion.
Century Pacific is scheduled to disclose its first-quarter earnings on May 7.
“We are seeing record demand for our products, specifically our ambient canned items since the implementation of the enhanced community quarantine,” the company said in an e-mail. “We saw a surge in sales for the months of March and April.”
Unlike other companies that have halted businesses and trimmed their workforce, Century Pacific also increased its manpower to meet an uptick in demand for the past two months. It also opened a new plant in General Santos City to augment supply.
“Our production, distribution, and warehouse facilities, alongside other critical functions, are currently operating at or near capacity given the strong demand for our products,” the company said.
“We are cognizant that our products, which are primarily shelf-stable and consumed at home, are basic necessities and have become even more essential to households during this critical time,” it explained.
7-Eleven suffers from community quarantine
But unlike food manufacturers, retailers like 7-Eleven convenience stores are suffering from the Luzon lockdown that started March 17 and is poised to culminate on May 15.
“The impact of the (lockdown) to our sales is unfavorable mainly because of the disruption to our supply chain and the shutdown of public transportation affected the access of our front-liners to the stores,” said Lawrence de Leon, chief financial officer of Philippine Seven Corp., which operates 7-Eleven.
“That is why 25% of 7-Eleven stores remained to be closed,” he said in a Viber message. There were 2,593 7-Eleven stores nationwide as of last year, according to data provider, Statista.
However, in a disclosure at the local bourse on Monday, the company said it “remains to be optimistic” on business prospects this year and that it is “slowly” reopening some of its closed branches in areas now under a more relaxed general community quarantine.
“We believe that things are improving and we are in a better position to respond to the opportunities brought about by this health crisis,” the company said.
Source: https://www.philstar.com/business/2020/05/04/2011750/canned-goods-maker-wins-convenience-store-loses-quarantine