RFM profit rises 9% on strong sales
RFM Corp., the Conception family’s food and beverage manufacturer and retailer, said earnings rose in the first nine months of the year, led by its pasta and dairy segments.
RFM said net income during the period hit P683 million, up 9 percent from year-ago level. Total revenue hit P8.73 billion, up from P8.41 billion posted in the same period last year.
The company said it could sustain that performance through the last quarter of 2016. Consumer companies tend to do well in the fourth quarter, as spending increases in the run-up to the busy Christmas season.
According to RFM President and CEO Jose A. Concepcion III, sales of branded consumer goods under Selecta ice cream, Fiesta pasta, and Selecta Milk, posted “strong growth” during the first nine months of 2016.
The gains came despite the onset of La Niña. The company also credited the increase to its marketing efforts and promotions highlighting “affordability.”
As a result, ice cream sales sustained its double digit rise. Moreover, RFM said its “P59 pasta-and-sauce dish TV campaign” during the third quarter also supported Fiesta pasta’s growth momentum.
Likewise, RFM’s Royal pasta brand also launched its P135 pasta-and-sauce spaghetti dish bundle that improved topline.
Selecta Milk continued to post strong growth behind strong sales of Selecta white milk line.
Meanwhile, soft prices in the flour business weighed down on total company revenue growth for the nine-month period. In addition, the discontinuation of traded products under Dole brand offset growth in the consumer business “to a small extent only.” —Miguel R. Camus
