MANILA, Philippines—Food and beverage group RFM Corp. grew its first-quarter net profit by 8.4 percent year on year to P167 million, due to better margins alongside modest sales volume growth.
In a disclosure to the PSE, RFM reported sales revenue of P2.24 billion for the first three months, slightly higher than the P2.22 billion level in the same period last year.
RFM president and CEO Jose A. Concepcion III said that despite the modest sales growth, profitability had improved due to better margins in its core businesses and higher sales of higher-margin products.
“The lower commodity input costs and managed operating expenses this year helped in bringing our cost levels down, ” he said.
“We saw double-digit growth in our consumer brands which offset the weaker flour sales during the period. The priority for us is to grow the branded side of our business and we are encouraged as well by the increasing consumer offtake readings for our Fiesta pasta, White King cake mixes and Selecta Milk,” he said.
Concepcion noted that revenues from newly acquired Royal pasta had just started to be sold under RFM only in February, and added that sales levels had so far been higher than those posted last year by the brand’s previous owner.