MANILA, Philippines–Concepcion-led food and beverage firm RFM Corp. has earmarked P1 billion for capital spending this year to expand its pasta, ice cream, bread-making as well as to realign beverage facilities.
In a press statement on Wednesday, RFM said this year’s capital spending would substantially rise from the P350 million spending last year in order to cover the expansion in pasta operation and ice cream distribution infrastructure. RFM is also spending for bread-making operations, distribution centers and the transfer of its milk and juice beverage facilities to Cabuyao, Laguna.
RFM likewise reported its interim January-to-May income performance. Net income for the period reached P315.2 million, which grew by 32 percent over the same period last year. This was on the back of consolidated sales revenues of P4 billion for the same period, down by 6.7 percent year-on-year, as RFM’s former Swift meat business was no longer part of consolidated sales this year.
The meat business was earlier sold to the Century Tuna group of the Po family.
Income growth was sustained with better margins from its production processes, due to the easing of commodity cost inputs such as milk and sugar, as well as efforts to cut processing costs, improve yields and bring down fixed overhead expenses, RFM president and chief executive officer Jose Concepcion III said.
RFM continued to strengthen further its supply chain competency to stay ahead of competition, Concepcion said. He added that the overall economic growth and sound fundamentals remained encouraging for consumer-oriented companies to build on its operations’ capabilities.
“We have to sustain our leadership in cost-efficiencies and productivities to be able to strengthen RFM brands’ long-term value-for-money proposition to Filipino consumers”, Concepcion said.