CONCEPCION-led food and beverage group RFM Group. chalked up a record high net profit P908.4 million in 2015, driven by the strong branded food business.
The net profit level last year marked a 9-percent increase over the bottom-line in 2014, the company said in a press statement. This was in turn fuelled by the 11-percent growth in sales revenues to P12.2 billion, likewise a record-high for the company.
RFM president and chief executive officer Jose Concepcion III cited strong sales of RFM’s consumer branded businesses like pasta and ice cream.
For pasta, both Fiesta and Royal brands marked record growth rates and new high levels, growing at a double digit pace. This was as the company improved the line-up of distributors and solved placement issues with some accounts.
Concepcion said Selecta ice cream had likewise hit double-digit growth rates again, expanding its market and increasing consumption frequency with new product innovations and value propositions.
“Income also registered a new-high level as we sold more of the higher-margin products and as we hit better economies of scale that helped spread overhead costs. Other businesses like milk have also exhibited improvements in performance after finetuning its business model”, Concepcion said.
RFM also earlier disclosed that with stronger income and cash flow, it had wiped out its parent company debt to strengthen balance sheet. “RFM also retained its healthy cash position inspite of the bigger working capital used for production during the peak months of the fourth quarter”, Concepcion said.