Higher sales of branded products boost RFM H1 profit to P773M
Concepcion family-led food and beverage manufacturer RFM Corp. grew its attributable net profit by 19 percent to P773 million in the first semester, driven by higher sales of branded consumer food products and some belt tightening.
In the second quarter alone, RFM delivered a net income of P463 million, up by 3 percent. This was on the back of a 2-percent increase in sales to P5.2 billion.
In a regulatory filing, RFM reported that net sales for the six-month period had increased by 2 percent to P9.8 billion.
“The consumer group was the main factor behind this performance. Although flour sales volume increased compared to last year, lower market prices caused a slight drop in total flour sales revenue,” RFM reported.
“Despite this, the company continues to demonstrate resilience and steady growth in its main segments,” it added.
RFM operates two business segments, one of which is the institutional business. This primarily manufactures and sells flour, bakery and other bakery products to institutional customers.
Consumer segment
The consumer segment, on the other hand, manufactures and sells ice cream, milk and juices, pasta products as well as flour- and rice-based mixes. The company is known for the following brands: White King All-Purpose Flour, Fiesta Spaghetti, Selecta Moo, Sunkist Orange Pulp, Vitwater, Selecta Magnum, Selecta Cornetto, Selecta Paddle Pop and Royal Spaghetti.
“The group’s consumer segment continues to be a major contributor to the increase in RFM’s total sales and net income,” the company said.
Meanwhile, one big contributor to the income growth is the 31.6-percent decline in general and administrative expenses to P507 million during the six-month period.
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