RFM Corp incurs P572-M loss in ’03

Food and beverage conglomerate RFM Corp. incurred a P572-million net loss last year, a reversal from the P4.3-billion profit reported a year earlier.

The 2002 net income, however, included a one-time gain of P6.5 billion from the sale of controlling shareholder Concepcion family’s entire stake in Cosmos Bottling Corp. to San Miguel Corp. Net sales fell 27 percent to P6.65 billion from P9.11 billion. Gross profit likewise declined to P1.03 billion from P1.09 billion a year ago due to increases in raw material inputs and the peso’s depreciation against the US dollar.

Despite intense competition, RFM’s Branded Food Group registered an eight-percent increase in revenues to P2.3 billion due to double-digit growth in products such as Selecta Moo, Sunkist Juice Quick Lamig, Sunkist Powder Pitcher Pack, Fiesta Pasta, Swift Corned Beef and Sweet and Juicy Hotdog.

The joint venture Selecta Walls with Iglo Sdn Bhd. pumped in P1.28 billion in revenues growing 36 percent from P934 million last year. This was attributed to the 95-percent completion of One Mckinley Place and sales volume growth in ice cream operations due to consumer acceptance of Take Two 3-in-1 and Sundae products.

Through its wholly-owned subsidiary Philippine Townships Inc. (Philtown), RFM has a P250-million investment in high-rise condominium building One Mckinley Place Inc. at the Bonifacio Global City.

RFM’s partnership with Iglo, on the other hand, involves the operation of logistics service and cold chain facilities.

Iglo is a member of the Hai San Group, a publicly-listed Malaysian company. It is the exclusive cold chain service provider of Unilever Walls in Malaysia, Singapore and Thailand, along with other global customers.

Consolidated assets, however, declined to P10.5 billion from P13.7 billion primarily due to the declaration of its Swift Foods investment as property dividend to shareholders. This led to the decline of the following accounts such as receivable, inventories, fixed assets, and other current and non-current assets.

The company ended the year with remaining cash and short-term cash investments of P487 million from P1.8 billion last year mainly due to payment of maturing loans and trade payables to suppliers and contractors.

To boost sales, RFM will continue to strengthen its branded products in the hope of coming up with another winning brand such as Cosmos. With the sale of Cosmos, RFM is now focused on building up remaining brands such as Swift, Selecta and Sunkist.

Aside from Selecta and Swift, RFM is also the maker of Sunkist juices, Fiesta pasta and White King flour.