Mandaluyong—(PHStocks)—Food and beverage company RFM Corp. (PSE: RFM) reported yesterday that their full year net income in 2015 reached an all-time high of PhP908.4 million or an increase of 9% over 2014 income.
This was achieved on the back of PhP12.2 billion in sales revenues, up by 11% over the revenues posted for the same period last year. It was also the highest sales level posted so far by the company, which has been consistently growing in sales and income over the past years.
RFM President and CEO Jose A. Concepcion III said that sales continued to come in strong especially for its consumer branded businesses like its pasta and ice cream units. For pasta, both Fiesta and Royal brands posted record growth rates and new high levels, growing double digit, faster than the single-digit growth rate of the pasta category. Fiesta and the new Royal pasta started strong last year as the company improved the line-up of distributors and solved placement issues with some accounts.
Concepcion added that Selecta ice cream likewise hit double digit growth rates again as it expanded the market and increased consumption frequency with new product innovations and value propositions.
“Income also registered a new-high level as we sold more of the higher-margin products and as we hit better economies of scale that helped spread overhead costs. Other businesses like milk have also exhibited improvements in performance after fine-tuning its business model,” Concepcion added.
RFM also earlier disclosed that with its stronger income and cashflows, it has paid up all its parent company debts to strengthen further its balance sheet. “RFM also retained its healthy cash position in spite of the bigger working capital used for production during the peak months of the 4th quarter,” Concepcion said.