MANILA, Philippines - Food and beverage company RFM Corp. said yesterday it was on track to hit its P1.1 billion profit target for the year as its pasta and ice cream brands continue to dominate the market.
On the sidelines of the company’s annual stockholders meeting yesterday,
RFM vice president and CEO Enrique Oliver Rey-Matias said the company’s goal to raise its net income to P1.1 billion is “doable.”
“We’re looking at high single digit to double digit growth for our profit…It’s doable. Right now, we’re tracking that. If there will be any changes, we’ll just advise,” Rey-Matias said in an interview.
Matias said the growth in income will be driven by the rising sales of RFM’s Royal, Fiesta and Selecta brands.
He said the increased spending during the election period, as well as the intensified summer heat brought about by El Niño led to a a surge in RFM’s sales in the first half.
The company reported a net income of P508 million in the first half, up eight percent from the previous year.
RFM is also looking forward to better sales in the second half of the year, particularly during Christmas, which is its peak season.
Matias said the company would continue to release new products and provide innovations to maintain Royal, Fiesta and Selecta’s dominance in the market.
Low cost of raw materials will also contribute to the growth in RFM’s net income.
“Milk prices have gone down. The wheat of our pasta has gone down. It’s a benign environment in terms of our input process so we’re seeing better margins for the company and that should trickle down to our net income,” Matias said.