Strong demand for ice cream, pasta drive RFM earnings
The Concepcion-led food and beverage firm RFM Corp. posted a 20 percent jump in its first quarter net earnings, buoyed by higher contributions from its ice cream and pasta businesses.
RFM told the Philippine Stock Exchange that its net income from January to March reached P216 million.
The 20 percent increase in profit was better than the same period last year.
This was achieved on the back of P2.6 billion in sales revenues or two percent more than the year earlier.
RFM President and CEO Jose A. Concepcion III said sales continued to pose double digit growth of 16% for its consumer group which includes ice cream and pasta units.
The firm’s ice cream joint venture with Unilever, Selecta accelerated to a faster double-digit growth with new product innovations, excellent value propositions and ffective marketing campaigns.
Selecta’s market share expanded with its wider distribution reach and increased consumption frequency.
“The continued growth in the pasta group further improved its economies of scale, as warehousing and logistics operations get rationalized. These factors coupled with better input costs significantly improved the group’s profitability”, Concepcion said.
With stronger consumption spending seen this year with more robust purchasing power and being an election year, and the outlook on more favorable commodity input costs, this year promises to be a better year, Concepcion added.