Concepcion-led food and beverage company RFM Corp. grew its net profit in the first six months by 8 percent year-on-year to P508 million, gaining from strong consumer spending during the period.
This is in line with RFM’s goal to breach the P1-billion net profit milestone this year.
For the six-month period, RFM booked P5.8 billion in sales revenues, up by 5 percent over the revenues posted for the same period last year.
In a disclosure to the Philippine Stock Exchange, RFM president and CEO Jose Concepcion III reported that sales of Selecta ice cream and Fiesta pasta posted strong growth for the first semester.
Ice cream sales got a boost from the combined impact of El Niño and the usual hot weather during summer, he said.
The ice cream business under Unilever Selecta Ice Cream Inc., a joint venture with Unilever, accounts for nearly a third or the single biggest component of RFM’s total business.
The company also reported that its Fiesta pasta and sauce brand, White King cake and flour mixes as well as Selecta Milk likewise saw good topline growth during the period.
Concepcion noted that “improvements in our supply and distribution system also supported the growth momentum in sales and profits.”
RFM expects to sustain this topline growth momentum for the second half of the year, especially with more product innovations for the consumers.
The ice cream business under Selecta, which has a dominant 80 percent market share, is seen to lead the expansion in RFM’s branded consumer business with a projected growth of 20 to 30 percent this year. Doris Dumlao-Abadilla