Listed food and beverage company RFM Corp. said its net income in the first six months of the year grew 10 percent from last year driven by higher sales mainly of its ice cream and pasta brands although operational constraints caused by the truck ban in Manila weighed on earnings.
In a statement, the Concepcion family-led firm said net profit in the first half rose 10 percent to P427 million from P387 million in the same period last year, while sales went up 5 percent to P4.99 billion from P4.77 billion previously.
RFM President and Chief Executive Officer Jose Concepcion 3rd said the company would have captured 15- to 20-percent more revenue were it not for the operational bottlenecks from the truck ban and port congestion in Manila.
He said the logistical issues caused by these problems adversely affected the supply chain of almost everyone in the industry.
Nonetheless, Concepcion said the company’s higher-margin products helped boost earnings in the second quarter.
“The company was also able to manage its operating expenses, while cost of certain critical inputs were also tracking lower than previous periods,” Concepcion said.
“We also saw double-digit growth in our major consumer brands, and we shall continue to prioritize our efforts in these categories. We expect even better numbers as we go to the second half of the year, which is usually the stronger half,” he added.
Concepcion highlighted the need to address the port congestion and trucking issues in Manila to restore normal operations that would lower operational costs.
RFM is engaged in the processing and manufacture of flour and flour-based products like pasta, sauces and cake mixes, milk and juice drinks, canned and processed meats, as well as ice cream.
Besides Selecta ice cream, Fiesta and Royal pasta brands, RFM’s other well-known labels include Sunkist juices, Selecta Milk, Vitwater and Alo Green Tea for beverages, and White King Hot Cake and Butterfresh Margarine for cake mixes.