Sales for the quarter rose 8.8 percent to P1.4 billion. From an operating loss of P32 million, the company reported an operating income of P73 million.
Commenting on the improved performance of the company, RFM president and chief executive officer Jose A. Concepcion III said: "We are beginning to see the first fruits of our investments in brand-building even as we tighten up on our product supply costs and operating expenses."
For the first half this year, RFM trimmed its net loss to P15 million from a P98 million net loss the previous level as sales grew 11 percent.
Sales amounted to P2.7 billion while operating income stood at P79 million.
Concepcion said he expects RFM to break even this year and start making money in 2005 as investments in advertising and marketing start paying off. Sales are expected to grow to P6.5 billion this year compared with only P5.72 billion in 2003.
RFM’s net loss last year amounted to P455 million, significantly lower than the P1.29 billion incurred in 2002. The company suffered from weak consumer spending and investors’ confidence last year due to the peso depreciation, political uncertainties, the outbreak of the Severe Acute Respiratory Syndrome (SARS) virus in Asia and the war between Iraq and the US.
Concepcion said RFM intends to sustain its gains for the rest of the year through the offering of innovative products and intensified marketing activities.
RFM executive vice president and chief operating officer Felicisimo Nacino Jr. added that the company is "betting on our new affordable innovations and flagship products to grow our revenues and support the bottomline."
"With the right product strategy and with firm operating discipline, we are confident of completing RFM’s transformation into a strong and respected leader in the branded food business," he said.
RFM makes and markets the Selecta Moo brand of ready-to-drink and powdered milk, Sunkist ready-to-drink juice and powdered juice, White King hotcake and flour mixes, Fiesta pasta products, and Swift Mighty Meaty and Sweet N Juicy hotdogs, corned beef and other processed meat products.
Together with Unilever, RFM also makes and markets the popular Selecta ice cream.
RFM is also involved in a variety of activities including flour milling, food processing, animal husbandry, animal feed meal production, and the marketing and distribution of grocery products.