RFM exceeds profit target

MANILA, Philippines -Food and beverage conglomerate RFM Corp. posted a net income of P503.8 million in 2011, exceeding its yearend income target of P450 million.

Last year’s figure, however, was 19.39 percent lower than the P625 million profit reported in 2010.

In a statement, RFM said sales rose eight percent to P9.9 billion as effective cost-management measures cushioned the impact of high commodity costs.

RFM president and chief executive officer Jose A. Concepcion III said the company did relatively well despite inflationary fears and more rains last year that normally dampen consumer spending.

“We believe that stronger brand equity and product innovations have influenced the shift in buying pattern and frequency in a number of categories.  The focus on core food and beverage businesses is paying off,” Concepcion said.

He noted that Selecta Ice Cream, a joint venture with global consumer products giant Unilever, has shored up its market share to 71 percent from 66 percent at the start of 2011.

“Remarkable growth was seen in Selecta-Hersheys, Supreme, Classic and Cornetto lines, with innovations backed by strong marketing campaigns,” he said.

In addition, flour-based businesses led by White King Fiesta spaghetti likewise continued to hit record sales with growth close to 50 percent, and pushing up its market share to 35 percent from 28 percent.

Selecta recently expanded capacity and inaugurated its P800-million state-of-the-art ice cream facility in Manggahan, Pasig.

Sales of Selecta milk, White King champorado and arroz-caldo mixes, Sunkist litro pack and Swift Mighty Meaty and Corned Beef Swak likewise boosted RFM’s sales.

RFM also refurbished its old mill into a P250-million modern flourmill to likewise support the growth of its Fiesta and White King products.