MANILA—RFM Corp. posted an 18-percent growth in net profit last year to P682 million on increased sales of higher-margin products alongside lower input prices.
In a press statement, RFM president Jose Concepcion III attributed the 2013 income growth to better margins in the company’s core businesses, higher sales of higher-margin products, as well as reduced overhead expenses.
“The lower commodity input costs in the early part of the year and managed operating expenses helped in bringing our cost levels down,” he said.
Sales revenues stood at P10.3 billion in 2013, slightly lower than P11 billion reported in the previous year.
“Stronger consumer spending was also felt in some categories, especially in our Sunkist beverage and Selecta milk. At the same time, Fiesta pasta posted growth relative to its category, which brought up further its market leadership position to 35 percent market share in the third quarter, from 29 percent just a few months back. Fiesta pasta sustained its growth trend during the fourth quarter peak season, while core brand Selecta ice cream also registered growth in more product categories towards the last few months of the year,” Concepcion said.
RFM recently reported its acquisition of the Royal pasta brand, the second-largest brand in the country, which is expected to complement its Fiesta brand, and bring up its market share to nearly 50 percent.
“We remain confident in the market leadership and strength of our power brands Selecta and Fiesta, and now with Royal, and we expect a stronger top-line growth of over 20 percent, as we pursue more innovations that excite the Filipino consumers, supported by relevant marketing campaigns, such as the launch of Selecta Magnum Gold this week,” Concepcion said.