Food and beverage firm RFM Corp. reported P245 million in net income last year, about 5 percent higher than P234 million it posted in 2007.

In a disclosure to the Philippine Stock Exchange, RFM said its income grew on the back of strong consolidated net sales, which reached P7.5 billion from the year-ago level of P6.1 billion.

“Stronger sales, ranging from 30-percent to over 60-percent growth rates, were achieved by the branded food and beverage businesses. Sales of beverage products increased with the launching of more Sunkist juice and iced-tea flavors in more convenient PET bottles," said RFM President and CEO Jose Concepcion III.

Concepcion said sales growth was achieved across its many divisions, including frozen and canned meats, pasta, ice cream, and beverages.

“We expect the growth momentum to continue as we approach the stronger months and as we put more marketing support in building our brands”, Concepcion said.

For his part, RFM Executive Vice President and Chief Operating Officer Felicisimo Nacino Jr. said the company's gross profit base increased to P1.63 billion last year from P1.49 billion in 2007.

However, he said gross margins declined to 21.6 percent last year from 24.6 percent as cost reduction measures were not enough to offset higher raw material expenses.

Given this, Nacino said the company is aiming for lower operating expenses this year at 18.1 percent of sales versus its previous level at 20.4 percent.

“Moving forward, RFM shall continue with its efforts to bring greater value to consumers with more product innovations at affordable prices, coupled with strategic brandbuilding programs, as it continues to keep watch on its productivity levels and cost structure amidst the volatile raw materials market,” he said.