RFM posts banner year with P805-M profit

MANILA, Philippines - Food and beverage firm RFM Corp. posted a banner year in 2013 due to strong turnover of high-margin products and reduced expenses, a development seen to continue this year.

In a regulatory filing, the maker of Selecta ice cream and Fiesta pasta said its earnings jumped 18 percent to P805 million last year from P682 million the previous period.

RFM president and CEO Jose A. Concepcion III attributed the income growth to better margins in its core businesses, higher sales of high-margin products and reduced overhead expenses.

This offset the 6.69-percent drop in sales revenues to P10.3 billion from P10.99 billion a year ago as it unloaded its meat business to the Century Pacific group.

“The lower commodity input costs in the early part of the year and managed operating expenses helped in bringing our cost levels down,” Concepcion said.

“Stronger consumer spending was also felt in some categories, especially in our Sunkist beverage and Selecta milk,” he added.

Fiesta pasta cemented its market leadership position with a 35-percent market share from 29 percent a few months earlier while core brand Selecta ice cream also recorded growth in more product categories late last year.

Last month, RFM strengthened its foothold in the pasta segment with the acquisition of the Royal brand and pasta business of Anglo-Dutch consumer goods giant Unilever Group for P2.1 billion. RFM’s share in the pasta market is now expected to improve to more than 50 percent.

“Fiesta and Royal brands lead other brands in offering spaghetti, macaroni, and pasta-and-sauce bundles that provide more convenient easy-to-prepare pasta meals,” RFM said.

RFM targets another banner year, banking on the growth momentum in the previous years and market innovations.

“We remain confident in the market leadership and strength of our power brands Selecta and Fiesta, and now with Royal,” Concepcion said.

“We expect a stronger topline growth of over 20 percent as we pursue more innovations that excite the Filipino consumers, supported by relevant marketing campaigns,” he added.

Aside from pasta, RFM is also the firm behind White King cake and sauce mixes, and Sunkist beverage.