RFM’s 2014 net profit up 10%

CONCEPCION-led food conglomerate RFM Corp. grew its net profit last year by 10 percent to P863 million, riding on buoyant domestic consumption.
But RFM could have performed even better in 2014 if not for the port congestion in Manila,
RFM president and chief executive officer Jose A. Concepcion III said in a press statement on Thursday.
While port congestion had been reduced, it still affected the timeliness of deliveries and the cost of raw materials and products. Operational costs also temporarily increased due to additional warehouses and higher trucking rates brought about by shortage in providers, the company said.
The City of Manila implemented a total truck ban for seven months last year before bowing to public pressure and lifting the ban in mid-September.
For its part, RFM’s net profit of P863 million for the full year of 2014 was achieved on the back of the 8-percent jump in sales revenues to P11.1 billion.
RFM said that growth particularly in the Fiesta and Royal pasta operations had accelerated especially in the last two months of the year as logistics issues improved in time for the peak in demand during the Christmas holidays, partially offsetting the impact of an unusual weather disturbance in December.