RFM sees lower than market-dictated profit


Pasta and ice cream maker RFM Corp. is looking at modest growth this year, possibly falling short of a “market-dictated” target due to the lingering impact of a port congestion problem.

“No, I don’t think we will make P1 billion. We’re looking at P950 million,” Jose Ma. Concepcion 3rd, RFM president and chief executive officer, told The Manila Times on the sidelines of BPI Sinag Awards late Tuesday.

The P1 billion, Concepcion said, is what “the market is telling us to hit.”

“[I think what would be more realistic is something] between P950 million to P1 billion …
It depends on what happens in the last quarter. If all comes together, no problem, no major typhoons, then we should be okay,” he added.

The P1-billion goal was a running target last year but the company was plagued by port congestion at Manila’s ports. Supplies, operations and efficiencies were affected, which led to importation of raw materials from the Middle East.

In 2014, RFM ended with P833.74 million in net income.

RFM is optimistic for 2015 given the current macroeconomic environment, and Concepcion noted that there could be a boost from upcoming election spending as early as Christmas, which he said “looks good”, that can boost sales of its branded consumer products.

Concepcion said the firm was also open to acquisitions if opportunities arose.

“There’s nothing yet. No one is selling anything. Of course, we will look at [acquisitions]if it’s within the business model that we’re doing,” the RFM president said.

With the firm’s new pasta line, Concepcion claimed the group would be “okay for the next one to two years” before another expansion step is made.

RFM booked P472 million net income in the first six months of 2015, up from P426.8 million a year earlier. Revenues also grew to P5.5 billion from P4.99 billion a year ago.

RFM is pushing to grow sales of its existing product lines, especially pasta products Royal and Fiesta that Concepcion wants to grow to a market share of 60 percent —“hopefully in two years”—from the current 39 percent.

RFM is engaged in the processing and manufacturing of flour and flour-based products such as pasta, sauces and cake mixes, milk and juice drinks, canned and processed meats, and ice cream.

Aside from Selecta ice cream and milk products and the Fiesta and Royal pasta brands, labels under RFM include Sunkist juices, Vitwater, White King cake mix and Butterfresh margarine.


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