Albeit slower than its performance in the first nine month of last year, listed food and beverage company RFM Corp. increased its full-year 2013 net income on the back of higher sales.
The company’s financial report showed that RFM had P805 million in its net income for the full-year 2013, up by 18 percent over the P682 million it recorded in the previous year.
This, according to the company, is on the back of P10.3-billion sales in 2013.
Jose Concepcion 3rd, RFM president and chief executive officer, attributed the company’s income growth to better margins in its core businesses, higher sales of higher-margin products, as well as reduced overhead expenses.
“The lower commodity input costs in the early part of the year and managed operating expenses helped in bringing our cost levels down,” Concepcion said.
Last year, RFM acquired the Royal pasta brand, the second-largest pasta brand in the country, which is expected to complement its Fiesta brand and increase its market leadership to close to 50 percent.
“We remain confident in the market leadership and strength of our power brands Selecta and Fiesta, and now with Royal, we expect a stronger top-line growth of over 20 percent, as we pursue more innovations that excite the Filipino consumers,” Concepcion further said.
During the first nine months of 2013, RFM posted P525 million in net income, up by 19 percent from P441 million for the same period last year.
The company also reported sales of P7.1 billion for the first nine months. This was around 9 percent lower than 2012’s P7.8 billion, primarily from its disposal of its meat business late last
year, as well as lesser selling days caused by weather disturbance.