RFM Q1 income up 8 pct to P167-M
MANILA – Concepcion-led food and beverage company RFM Corporation saw its net income increase by 8.4 percent in the first three months of 2014.
In a disclosure to the stock exchange, RFM Corp. said its net income surged to P167 million in the first quarter from the P154 million for the same period last year.
Its first quarter sales revenue was also slightly higher at P2.24 billion from the P2.22 billion sales revenues for the same period in 2013.
RFM President and chief executive officer Jose A. Concepcion III said the firm’s profitability improved due to better margins in its core businesses and higher sales of higher margin products.
“The lower commodity input costs and managed operating expenses this year helped in bringing our cost levels down,” he said.
He also said the double-digit growth in the firm’s consumer brands offset weaker flour sales in the first quarter.
“The priority for us is to grow the branded side of our business and we are encouraged as well by the increasing consumer offtake readings for our Fiesta pasta, White King cake mixes and Selecta Milk,” said Concepcion.
“The second quarter also started to show stronger numbers with double digit growth posted again in April by its main brands like Selecta milk and ice cream and the pasta group. We remain bullish on a stronger 2014, banking on stronger consumer spending, and the market leadership and strength of our power brands Selecta, Fiesta and now also Royal,” he added.