Food and beverage company RFM Corp. has jacked up its capital spending for this year by nearly a third, to expand its brand distribution as well as its facilities, among others, a company official said.
The capex of the company for this year is higher than its capex in the previous year, which was pegged at P350 million.
Felicisimo Nacino Jr., chief operating officer of RFM, told reporters after the company’s annual stockholders meeting that for this year, RFM will be spending around P1 billion amid its plan to expand its brand distribution, the number of its distribution centers and the transfer of its milk and juice beverage plant to Cabuyao, Laguna.
“More than half of the P1 billion was spent already so far this year, majority of it was used for the transfer of milk and juice beverage,” he said.
The bulk of the capex will be internally generated, while the rest will be funded through loans.
RFM is set to transfer its milk and juice beverage plant to Laguna, after it sold its property in Manggahan, Pasig City, where it was used to be located. The property was sold for P300 million.
Nacino said that bulk of the company’s capex will be spent for the expansion of its pasta and ice cream distribution infrastructure.
For this year, the company will be spending around P380 million for a new macaroni plant in Mandaluyong City, as it intends to double its production capacity to solidify its share in the domestic macaroni/pasta market
RFM is also eyeing further growth in export, but the focus remains in the Philippine market, with sales expected to grow by 6 to 8 percent year-on-year, despite the decline it recorded in its sales in the first quarter.
For its profit, the company is still optimistic that it will register 15 percent to 20-percent growth.
“We are still keeping that overall guidance. We would keep the 20-percent increase,” Nacino said.