RFM earnings up 19% despite sale of meat business last year

RFM president and CEO Jose Concepcion III. Photo from https://www.lauravicuna.com/

MANILA, Philippines—Food and beverage company RFM Corp. said net income in the nine months through September rose 19 percent to P525 million, according to a company filing with the Philippine Stock Exchange on Monday.

RFM said better margins and reduced expenses helped the company post a profit increase, even as sales dipped 9 percent to P7.1 billion, which it attributed to the disposal of the meat business late last year, as well as lesser selling days due to more frequent storms and floodings this year.

In its filing, RFM president and CEO Jose Concepcion III attributed the income growth to better margins in its core businesses, higher sales of higher margin products, as well as reduced overhead expenses this year.

“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,” Conception said in the filing.

“Consumption spending was also felt in some categories, especially in our Sunkist beverage and Selecta milk,” he said.

The company’s Fiesta pasta also posted growth relative to its category, which brought up further its market share to 35 percent, from 29 percent just a few months back, Concepcion said.

“We expect even higher peaks in this fourth quarter when consumer spending starts moving up for the Christmas season,” he added.

“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’ equity,” he said.—Miguel R. Camus