RFM posts 49% net income growth to P365 million in 2009

MANILA, Philippines - RFM Corp., the food and beverage business of the Concepcion-Araneta family, reported a 49-percent growth in net income last year to P365 million.

In a disclosure to the Philippine Stock Exchange, RFM said its net sales reached P7.97 billion, six percent higher than the P7.55-billion registered in 2008. Operating income, on the other hand, hit over P613 million.

RFM president and chief executive officer Joey Concepcion attributed the group’s strong performance to better gross margins as costs of major raw materials softened towards the second half of the year. It also registered lower-cost operating platform with the transfer to more integrated, modern and efficient production facilities for its pasta, beverage and meat products.

Concepcion said he is confident the group can sustain its robust performance this year through the launch of innovative products and intensified marketing activities. “RFM sales should continue to grow well ahead of market growth, as the company promotes a more entrepreneurial way of thinking within the organization. This has led to more relevant and affordable innovations and higher value-for-money food and beverage alternatives to the consumer,” he said.

He noted that the Fiesta brand is now the second market leader in the group after the Selecta brand which has remained the number one ice cream brand in the country with an even stronger 58 percent market share as of end-2009.

Concepcion said Swift meat and Selecta milk products have also posted double digit growth in sales “with stronger consumer pull, new product introductions and deeper distribution penetration.”

In addition, RFM’s new health beverage line has also shown encouraging performance, led by Vitwater (water with vitamins and benefits), Alo Youth and Alo Green Tea (the first-mover local brand in the aloe vera-filled drink category), and Sunkist Healthy Heart orange juice, (a breakthrough orange drink with plant sterols that reduce cholesterol). – Zinnia dela Peña