Listed food and beverage company RFM Corp. on Monday said it posted net income of P167 million in the first three months of the year, up 8.4 percent from last year’s P154 million, thanks to better margins in its core businesses.
The company said it expects profits to pick up in the second quarter following the modest growth in first-quarter income.
In a filing with the Philippine Stock Exchange, RFM president and chief executive officer Jose Concepcion 3rd said that despite the flat profit, the company’s second-quarter performance could potentially grow faster than its first-quarter earnings.
“The second quarter also started to show stronger numbers with double-digit growth posted again in April by some of our main brands in milk, ice cream and pasta businesses,” Concepcion said.
“We remain bullish on a stronger 2014, banking on stronger consumer spending, and the market leadership and strength of our power brands,” he added.
Sales revenue in the first three months rose slightly to P2.24 billion from P2.22 billion in the same period last year.
Concepcion said that despite the modest sales growth, profitability has improved due to better margins in its core businesses and higher sales from its products.
According to him, the lower commodity input costs and managed operating expenses this year helped in bringing cost levels down.
“We saw double-digit growth in our consumer brands which offset the weaker flour sales during the period. The priority for us is to grow the branded side of our business,” Concepcion further said.