RFM Posts 10% Revenue and 7% Income Growth in 2018 1st Quarter

Food and beverage company RFM Corporation reported a 10% growth of revenues for the first three months of 2018 which resulted to a 7% rise in net income, based on 1st Quarter unaudited numbers. Sales grew from P2.55B to P2.8B lifting the company’s net income to P211M from P198M from the same quarter last year.

RFM President and CEO Jose A. Concepcion III said that the company posted topline growth in all businesses including ice cream, flour, pasta, milk and private label.

First quarter revenues of the ice cream category leader Selecta grew 9% year on year while institutional sales including the bakery business rebounded with a 10% increase.

The combined sales of RFM’s other flagship brands - Fiesta pasta, Royal pasta, White King mixes and Selecta Milk - also registered a 12% expansion for the quarter.

The CEO noted that “the healthy growth of the branded consumer as well as commodity businesses resulted to a growth in net income of 7% to P211M.”

Concepcion also noted that RFM is celebrating its 60th founding anniversary this 2018 and the first quarter financial performance bodes well for a better year ahead. He also expects the Company to continue with its policy of a 50% dividend payout of recurring net income, and to pursue its ongoing share buyback program.

For the coming years, RFM’s growth shall be supported by our ongoing P1B capex for our ice cream business joint venture as well as our capex investments in flour milling, supply chain, milk, pasta and sauce. For 2018, we expect to sustain this strong first quarter momentum with the recent launch of our Selecta Fortified Milk TV campaign and upcoming marketing initiatives for our pasta, sauce and ice cream, over the course of 2018.