RFM posts record P908-M profit in 2015

MANILA, Philippines – RFM Corp. reported a record net income of P908.4 million last year on the back of strong revenues.

The company’s profit for 2015 reflected an increase of nine percent from the year before as revenues grew 11 percent.

RFM president and CEO Jose A. Concepcion III attributed the company’s strong performance to robust sales of its pasta and ice cream units.

“For pasta, both Fiesta and Royal brands posted record growth rates and new high levels faster than the single-digit growth rate of the pasta category. Fiesta and the new Royal pasta started strong last year as the company improved the line-up of distributors and solved placement issues with some accounts,” he said.

For the ice cream business, Concepcion said Selecta likewise hit double digit growth rates as it expanded the market and increased consumption frequency with new product innovations and value propositions.

“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”, Concepcion said.

With stronger income and cash flow, RFM was able to pay all its parent company debts, effectively strengthening further its balance sheet.

“RFM also retained its healthy cash position in spite of the bigger working capital used for production during the peak months of the fourth quarter,” Concepcion said.

Incorporated in 1957 as a flour manufacturer, RFM has diversified into poultry and livestock production and food manufacturing that includes flour-based products, margarine, milk and juices.