MANILA, Philippines—The food and beverage company, RFM Corp., saw a 27-percent decline in net income to P100 million in the first quarter from a year ago as the uptick in commodity prices gnawed at margins and consumer spending power.
In a press statement, RFM president Jose Ma. Concepcion III said that just like in many companies, margins were affected by the general slowdown in sales, rising prices of commodities such as wheat, sugar and milk, as well as the higher cost of power and utilities.
He said the company has been tempering the price increases of its products so as not to burden further the consumers and at least keep consumption levels. This is where past months’ efforts to improve cost structures and operating efficiencies have become useful in partially absorbing the cost shocks, Concepcion added.
Topline sales grew by a marginal 1 percent in the first quarter to hit P1.98 billion in sales revenue.
Concepcion reported a general softening of the market in many categories as the country’s consumer confidence fell during the first quarter due to rising oil and food prices and the political concerns in oil-rich Middle East and North Africa.