MANILA, Philippines - Food and beverage concern RFM Corp. grew its nine-month profit by 19 percent to P525 million on the back of improved margins across all core businesses and reduced overhead expenses.
“The lower commodity input costs and managed operating expenses this year helped in bringing our cost levels down as well as enhanced our ability to pass on the gains to higher value-added products in Selecta ice cream and Fiesta pasta,†RFM president and CEO Jose A. Concepcion III said in a statement issued yesterday.
RFM’s revenues, however, fell nine percent to P7.1 billion, largely due to the group’s divestment of its meat business late last year as well as lesser selling days due to more frequent storms and floodings this year.
According to RFM, its power brands Sunkist beverage, Selecta milk and Fiesta pasta continued to post upward trajectory with the latter increasing its market share to 35 percent from 29 percent a few months ago.
Concepcion expects the company to maintain its positive performance for the rest of the year given the onset of the Christmas season.
“We expect even higher peaks in this fourth quarter when consumer spending starts moving up for the Christmas season.†Concepcion said.
“For RFM, while we remain confident on the market leadership and strength of our power brands Selecta and Fiesta, we never stop rein forcing our marketing strategies with timely and relevant product innovations that excite the Filipino consumers, backed up by relevant marketing campaigns. Our business fundamentals remain robust as we continue to maximize every opportunity to grow even the market categories where we participate in, banking also on the strength of our brands’ equityâ€, he added.
Selecta, a joint venture with Anglo-Dutch consumer goods giant Unilever, already corners 74 percent of the local ice cream market while White King Fiesta division, which includes its fast-growing pasta business, holds 31.4 percent of the market.