Food and beverage firm RFM Corp. grew its third quarter profit by 20 percent to P211 million, keeping it on track to beating its reported 2016 net income of P1 billion.
The profit was yielded on the back of P3.16 billion in revenues for the quarter, 7 percent more than the sales recorded in the same period last year.
To date, RFM has reported a net income of P719 million for 2017.
In a statement, RFM president and CEO Jose Concepcion III said that with the “relatively less-than-usual wet weather” in the third quarter, Selecta ice cream became the main revenue driver for the period.
RFM’s ice cream joint venture with Unilever sells ice cream under such brands as Selecta, Cornetto and Magnum.
Sales from the joint venture offset flat sales from its Royal and Fiesta pasta brands, including Selecta Milk and Sunkist Juices.
The sustained growth of RFM’s private label bread unit likewise helped counter weaker performances of other income sources like flour.
Stronger consumption spending brought about by the beginning of the holiday season is seen to further boost the company’s operations.
Concepcion said in a statement that RFM ensures long term growth momentum with the planned P1-billion capex program for the ice cream joint venture that would ensure adequate production capacity over the long term.
There is also a P250-million capex for RFM’s flour unit over two years to upgrade the flour mills and ensure competitiveness of the flour brands.