FOOD and beverage firm RFM Corp. said that its P1.1 billion full-year profit guidance is still attainable despite the flat net earnings achieved during the second quarter.
Enrique Oliver Matias, the company’s chief financial officer, told reporters that the flat net income of P293 million in the second quarter from a year earlier was “due to timing issues.”
“Yes, it was flattish in the second quarter because what we are seeing is essentially some of our businesses have recognized some expenses. It’s the timing of some expenses. It might be a timing issue. So on a whole year basis, you’ll see, for example by the third quarter, instead of a flat one, we might see a better result than last year’s income growth,” Matias said on the sidelines of the company’s stockholders’ meeting in Mandaluyong City.
The company’s net income in the first half rose 8 percent to P508 million from P472 million a year ago, while revenues inched up 5 percent to P5.8 billion.
RFM, maker of popular Royal and Fiesta pasta, Selecta milk and chocolate drinks as well as the Sunkist fruit juice brand, said that although its ice cream product Selecta did very well during the second quarter on prolonged summer and election spending, their pasta line has not performed as well as the latter.
“That is our goal now, to ‘deseasonalize’ our pasta products so that people would eat them during weekends, pay day, and whenever they want as against only during Christmas or birthdays,” he said.
Thus, he said that for 2016, the record P1.1 billion net income guidance is “doable.”
“We’re hoping that, one, there’s the continuing consumer story of the Philippines, incomes are rising, we have a young population that’s willing to spend. With that, for our ice cream business, that’s very, very healthy for it,” he said.
“Coming from P905 [million]to P1.1 [billion]that’s double digit. Right now, we’re tracking that. Any changes we’ll just advise,” he said.
RFM posted net income of P908.4 million in 2015 and will need 10-12 percent growth in sales to hit its P1.1 billion profit target for the year.
Matias added that the company is looking at enlarging its footprint in the food and beverage market abroad as it is now present in the Middle East, the U.S., some parts of Europe and Southeast Asia.