RFM profit up 6% to P1.06 B

MANILA, Philippines — RFM Corp., the Concepcion family’s food and beverage company, managed to maintain the P1 billion net income last year.

In a disclosure to the Phi-lippine Stock Exchange (PSE) yesterday, RFM said it posted a net income of P1.064 billion, up six percent from 2016.

This was on the back of strong sales of pasta and ice cream.  Total sales reached P12.7 billion last year or same as in 2016.

RFM president and CEO Jose A. Concepcion III said that based on latest unaudited financials, the company’s consumer branded businesses such as Selecta ice cream and Fiesta pasta line, along with institutional bunline business, led the topline growth amid continuing price pressures in the commodity flour business.

“With resilient consumer branded businesses, RFM continues to see healthy income growth and as a result, we have recently declared a P300 million cash dividend which is just the first tranche of the 50 percent dividend payout of our 2017 P1.06 billion net income, as well as another P300 million budget for our continuing share buyback program,” Concepcion said.

Revenues of ice cream category leader Selecta alone grew 13 percent year-on-year, driving category growth.

The ice cream joint venture with Unilever is pouring in P1 billion for its capital expansion to meet its growth requirements for the medium term.

“The strong ice cream revenue growth as well as positive growth in the pasta branded businesses was mitigated by the softer Institutional sales as flour prices remained soft,” Concepcion said.

Concepcion expects the company to sustain amid steady consumer demand.

“RFM sees continued consumer consumption growth in the coming years and we are investing already to be able to take full advantage of that growth. For 2018, we see sustained growth in our ice cream and faster growth in the pasta business. We also plan to push our RTD milk lines for faster growth this year,” Concepcion said.