Food and beverage firm RFM Corp. has set a higher income target for this year on the back of a planned expansion of its pasta business, which contributes the lion’s share of the company’s overall revenue.
RFM is targeting to post P1 billion in net income and P12 billion in net sales toward the end of the year, RFM Chief Operating Officer Jun Nacino said during the company’s annual stockholders meeting held in Mandaluyong on Wednesday.
In 2013, RFM posted a net P805 million, while its consolidated sales stood at P10.3 billion.
“We’re counting on the branded consumer business like Selecta and Royal to lead the growth,” Nacino said. Selecta and Royal are the flagship brands of RFM under its ice cream and pasta business, respectively.
RFM vice president Ramon Lopez told reporters after the meeting that the targets are based on the firm’s various programs and campaigns to be implemented this year to further strengthen the market leadership of Selecta ice cream, and Fiesta and Royal Pasta.
Asked when the company will hit its target, Lopez only said, “We’re on our way [to that income level]”.
“Usually, we rely on our performance during the second half [of the year]. But the indication [on the overall economy]is looking great as well,” he further said.
Overall, the company has allocated P700 million for capital expenditure, almost half of which will go to the expansion of its pasta business.