RFM 1H Net Income Up 11%
Manila—(PHStocks)—Food and beverage company RFM Corp. (PSE: RFM) has reported a net income of PhP472 million in the first six months of the year, up by 11% compared to the same period last year. At the operating profit level, growth posted an even higher rate of 17%. This was achieved on the back of PhP5.5 billion in sales revenues, up by 10% over the revenues posted for the same period last year.
RFM President and CEO Jose A. Concepcion III said that sales continued to come in strong especially for Fiesta and the new Royal pasta as well as for Selecta ice cream, as new product innovations and value propositions broadened the market reach of these products.
For Selecta, the ice cream innovations like in the 3-in-1+1 flavor, Pinipig, Buko Pandan and Summer flavors segments had very good market acceptance, hitting over 20% growth rates. More store coverage, with more partner-stores like convenience stores and supermarkets, and better channel presence helped pushed-up sales volume.
Having passed the transition period last year, the company is also realizing from the start of the year the gains from the newly-acquired Royal pasta business. Other groups also showed encouraging volume growth like White King cake mixes and Selecta Milk. “Operationally, we were also able to improve our logistics systems, resulting to improved placements and trade servicing,” Concepcion added.
Concepcion also explained that “income grew a little faster as we sold more of the higher margin products and managed better the warehousing costs”.
RFM is reportedly gearing up for a stronger growth momentum in the second half as it approaches the peak months of September to December and as the election period heats-up, driving higher consumption patterns like before.
