MANILA, Philippines - Listed food and beverage firm RFM Corp. grew its profits by more than a quarter in the first semester, backed by strong consumer spending and lower input costs.
In a disclosure, RFM said its earnings jumped 28 percent to P387 million from P302 million last year.
“The lower commodity input costs this year, such as for sugar and wheat, helped in bringing cost levels down, as well as our ability to pass on the gains to higher value-added products in Selecta ice cream and Fiesta pasta,†said RFM president and CEO Jose A. Concepcion III.
“Stronger consumption spending was also felt in some categories, especially in our Sunkist beverage and Selecta milk that allowed us to have a better economies of scale in operations,†he added.
RFM also enjoyed high demand in the summer season particularly for Selecta ice cream and Fiesta pasta on account of seasonal graduations and fiestas.
Selecta, the company behind premium ice cream Magnum, is RFM’s joint venture with Anglo-Dutch consumer goods giant Unilever. It already corners 74 percent of the local ice cream market.
RFM’s White King Fiesta division, which includes its fast-growing pasta business, holds 31.4 percent of the market.
Moving forward, RFM targets to maintain its brand leadership and accelerate its business growth.
“Our business fundamentals remain robust as we continue to maximize every opportunity to grow even the market categories where we participate, banking also on the strength of our brands’ equity,†Concepcion said.
He said RFM is looking to fasttrack its growth through possible acquisitions and strategic partnerships. RFM expects to jack up its profits by 15-20 percent this year from P682 million last year.
Late last month, the food and beverage firm revived its plan for an equity offering that will allow the company to raise more than P1 billion.
Fresh funds from the share sale, which was approved by the company’s board of directors way back in 2011, will prepare RFM for acquisition and expansion opportunities.
The food and beverage maker tripled its capital spending to P1 billion this year to expand its macaroni, ice cream and bread production.