RFM reports 4-fold increase in net profit for 1st half

Food and beverage conglomerate RFM Corp. posted a net income of P95 million for the first six months of the year or more than four times the P18.6 million recorded the previous level, mainly driven by higher sales across all its products.

"The continuing positive trend was attributed to the strong performance of its flour, pasta, baked goods and ice cream businesses, while other segments such as meat, milk, juice and property development, continued to work on lowering their cost structures and improving their margins," said RFM in a statement.

RFM said consolidated net sales, however, remained at the same level as last year as the company continued to focus on fewer but stronger products and to consolidate its sales and distribution units nationwide.

Operating income grew 23 percent to P188 million from P153 million.

At the same time, RFM said it submitted its 2005 audited financial statements to the PSE, paving the way for the resumption of trading of the company’s shares, which had been suspended because of the delay.

In its 2005 audited report, RFM said operating income grew to P357 million from P134 million the prior year, leading to a consolidated net income of P168.2 million for 2005.

Net sales increased to P6.05 billion in 2005 from P5.85 billion a year earlier.

In submitting the report, RFM executive vice-president Felicisimo Nacino Jr. expressed the company’s apologies to the regulatory agencies and investing public, particularly its shareholders, for the delay in complying with the reportorial deadline.

Nacino said the delay was due to "the unfamiliarity of our accounting staff with the actual work requirements of transitioning this year from previously followed generally accepted accounting principles, to the new Philippine Financial Reporting Standards (PFRS)."

"With this first-time experience finally over and done with, we wish to assure our stockholders and the investing public of the company’s timely compliance with prescribed reportorial deadlines in the future," he said.

RFM sells pasta and other flour-based products, milk and juice products, processed and canned meat products. It is also into property development.