Concepcion-led food and beverage group RFM Group. chalked up a record high net profit of P908.4 million in 2015, driven by the strong brands under its 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 fueled by the 11-percent growth in sales revenues of P12.2 billion, likewise a record high for the company.
RFM president and chief executive Jose Concepcion III cited strong sales in RFM’s consumer branded businesses like pasta and ice cream.
For pasta, both Fiesta and Royal brands grew at a double-digit pace. This was due to the company’s improved lineup of distributors and resolved placement issues with account holders.
Likewise, the company’s Selecta ice cream hit a double-digit growth rate anew, 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 we have fine-tuned the business model,” Concepcion said.
RFM earlier disclosed it was able to wipe out its parent company’s debt with stronger income and cash flow.
“RFM also retained its healthy cash position despite the bigger working capital used for production during the peak months of the fourth quarter,” Concepcion said.