PASTA and ice cream maker RFM Corp. said it is positive about hitting the P1-billion profit target this year, banking on higher private consumption in the runup to the 2016 elections.
“We feel that in the next six months, our sales are going to be strong. Next year is an election year, so we see a lot of spending in Christmas. We are very bullish in the next six months as pasta, ice cream and milk will benefit from the election. We hope to reach P1 billion profit this year,” Jose Ma. Concepcion 3rd, RFM president and chief executive, said during the firm’s annual stockholders’ meeting (ASM) on Thursday.
A combination the macro environment and election spending as early as Christmas bodes well for RFM products, Concepcion said.
“This Christmas will be an indication of next year. If the [performance of products this]Christmas is strong, then it will be stronger next year,” he added.
The company aimed at P1 billion in profits last year, but was stalled by the port congestion that dampened both top line and bottom line. The port congestion plagued its supply, operations and efficiencies and compelled RFM to source some of its raw materials from the Middle East.
For the whole 2014, RFM made P833.74 million in net income.
On Thursday, the company revealed a P472-million net income in the first half of the year, up 11 percent from P426.8 million a year earlier. Revenues were up 11 percent to P5.5 billion from P4.99 billion.
Sales and profit this year will be “consistent” to earlier growth rates, but will eventually accelerate in the next few years as the company focuses on solidifying the push for its profitable branded products, Concepcion noted.
Asked if the company is looking at launching new products, Concepcion hinted it would not be the case moving forward.
“RFM has many brands, and we have to make them superstars. We just have to grow them eventually. There’s a lot of potential.”