FOOD and beverage company RFM Corp. posted an 8.6-percent year-on-year rise in net income in the first nine months of 2015 to P628 million, sustained by a healthy pasta and ice cream business.
According to RFM’s disclosure to the stock exchange Thursday, its operating profits grew at an even higher 9.2-percent rate, on the back of a 7.3-percent growth in sales revenues to P8.4 billion by end-September this year.
RFM President and Chief Executive Officer Jose Concepcion said sales from the company’s Fiesta and Royal Pasta brands have reached double-digit growth rates, after the company improved the line-up of distributors and solved placement issues with some accounts.
“Having passed the transition period last year, the company is also realizing from the start of the year the gains from the newly-acquired Royal pasta business,” Concepcion said.
Concepcion noted RFM’s Selecta ice cream brand has also reached high double-digit growth rates in sales, as it “expanded its market category and increased consumption frequency with new product innovations and value propositions.”
Concepcion said other RFM businesses like milk and juice also improved, after fine-tuning their business models.
“Operationally, we were also able to improve our logistics systems, rationalize our warehousing and distribution flow, resulting in improved placements and trade servicing,” he added.
Just last month, Concepcion said the company was looking at a modest growth this year, possibly falling short of the market-dictated target of P1 billion by the end of 2015, due to the port congestion problems.
He said RFM is looking at a P950-million target for 2015.
Concepcion said with its stronger income and cash flows, RFM has paid up all its long-term debts, strengthening its balance sheet.
“This brought down long-term debt to zero, making RFM long-term debt-free, while short-term debts have been paid last October, even during the peak period of production build-up,” Concepcion said.