Branded labels drive bottom line higher
RFM Corp. saw its net income increased by 9 percent in the first nine months of the year on the back of higher sales of its branded ice cream, pasta and milk products.
In a disclosure to the Philippine Stock Exchange on Tuesday, RFM said its net income after tax went up to P683 million in January to September from P628 million a year earlier.
Revenues increased by 3.8 percent to P8.73 billion from P8.41 billion in the same comparable period.
RFM President and Chief Executive Officer Jose A. Concepcion III noted the sales of branded consumer goods under Selecta ice cream, Fiesta pasta, and Selecta Milk posted strong growth in the first nine months of the year.
Ice cream sales still sustained a double-digit growth despite the onset of La Niña due to the push for availability, affordability and visibility of the products.
The TV campaign P59 pasta-and-sauce dish in the third quarter boosted Fiesta pasta’s performance, while the Royal pasta brand launched its P135 pasta-and-sauce spaghetti dish bundle that improved sales.
Selecta Milk also kept to a strong growth path on higher sales of the white milk line.
But the flour business weighed on total revenues due to lower market prices. Dole products were also discontinued in the branded consumer business.
RFM expects to sustain the 9 percent profit growth during the last quarter of the year, a downward revision from its previous P1 billion guidance for the whole of 2016.
The growth will be supported by the Royal pasta-and-sauce dish pack, as well as the sales momentum of Fiesta pasta, milk and ice cream.
RFM is engaged in processing and manufacturing of flour and flour-based products like pasta, sauces and cake mixes, as well as milk and juice drinks, canned and processed meats, and cream.
RFM products also include Sunkist Juices, Vitwater and Alo Green Tea, White King Hot Cake and Butterfresh Margarine.