LISTED food and beverage company RFM Corp. said net income rose to a record high in 2015 on the back of strong sales by its pasta and ice cream units.
In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, the company said net income in 2015 jumped 9 percent to P908.4 million against P833.74 million in the previous year.
“Income also registered a new-high level as we sold more of the higher-margin products and as we hit better economies of scale that helped spread overhead costs. Other businesses like milk have also exhibited improvements in performance after fine-tuning its business model,” RFM president and chief executive officer Jose Concepcion 3rd said in a statement.
RFM said sales rose to an all-time high of P12.2 billion, up 11 percent from the previous year’s P10.99 billion.
“Sales continued to come in strong especially for its consumer branded businesses like its pasta and ice cream units,” the company said.
It said that for its pasta brands Fiesta and Royal, sales grew at a double-digit rate, faster than the single-digit growth of the entire pasta category.
RFM said the two pasta brands started strong last year after the company improved the lineup of distributors and solved placement issues with some accounts.
Concepcion said its Selecta ice cream brand hit double-digit growth rates again with a wider market and improved consumption frequency due to new product innovations and value propositions.
With its stronger income and cash flows, RFM said it managed to pay all its parent company debts worth P252 million.
In May last year, the company had also paid in advance some P280 million worth of its obligations.
“RFM also retained its healthy cash position in spite of the bigger working capital used for production during the peak months of the 4th quarter,” Concepcion said.