Concepcion-led food and beverage company RFM Corp. grew first quarter net profit by 7 percent year-on-year to P211 million, driven by growth across all businesses such as ice cream, flour, pasta, milk and private label products.
Sales revenue rose by 10 percent to P2.8 billion for the first three months of 2018, RFM said in a statement.
RFM president and CEO Jose A. Concepcion III attributed the first quarter profit performance to “healthy growth of the branded consumer as well as commodity businesses.”
First quarter revenue of the ice cream category leader Selecta grew by 9 percent year on year. Institutional sales, including those from the bakery business, grew by 10 percent.
The combined sales of RFM’s other flagship brands—Fiesta pasta, Royal pasta, White King mixes and Selecta Milk—also grew by 12 percent for the quarter.
“For the coming years, RFM’s growth shall be supported by our ongoing P1-billion capex (capital expenditure) for our ice cream business joint venture as well as our capex investments in flour milling, supply chain, milk, pasta and sauce,” Concepcion said.
“For 2018, we expect to sustain this strong first quarter momentum with the recent launch of our Selecta Fortified Milk TV campaign and upcoming marketing initiatives for our pasta, sauce and ice cream, over the course of 2018,” he added.
Concepcion noted that RFM was celebrating its 60th founding anniversary this 2018, adding that the first quarter financial performance boded well for a better year ahead.
He also expects RFM to continue with its policy of a 50-percent annual dividend payout of recurring net income, and to pursue its ongoing share buyback program. —DORIS DUMLAO-ABADILLA