RFM Corp., listed manufacturer of the Royal and Fiesta pasta and Selecta ice cream brands, recorded a 10 percent increase in 2014 net profit on strong pasta sales.
The company booked P863 million in net income last year, 10 percent higher than the P785.9 million recorded in 2013, as revenues increased by 8 percent to P11.1 billion.
RFM president and chief executive officer Jose Concepcion 3rd said the earnings growth came from the Fiesta and Royal brands’ performance especially in the last two months of the year, during the Christmas holidays, offsetting the weather concerns in December.
Among the other brands that had the fastest growth were Selecta ice cream, White King flour mixes, Selecta milk and its institutional bread businesses.
Concepcion said earnings would have been higher if not for the Manila port congestion last year that affected the schedule of deliveries and the cost of raw materials and products.
He said operational costs also increased due to additional warehouses and higher trucking rates brought about by a shortage in providers.
“All told, RFM managed to find ways to improve the supply and distribution system that sustained the growth momentum in sales and profits,” Concepcion said.
“Efforts will be focused on how we can further improve cost efficiencies, but we hope the authorities immediately address the external supply chain constraints to bring back a better operating environment for the business sector,” he added.
RFM is engaged in the processing and manufacturing of flour and flour-based products like pasta, sauces and cake mixes, milk and juice drinks, canned and processed meats, as well as ice cream.
Besides Selecta ice cream, Fiesta and Royal pasta brands, popular labels under RFM include Sunkist Juices, Selecta Milk, Vitwater and Alo Green Tea for beverages, and White King Hot Cake and Butterfresh Margarine for cake mixes.