RFM President
and CEO Jose Ma. A. Concepcion III reported a 12% growth of revenues for the
first six months of 2018 for the Company which resulted in a 3% rise in net
income.
Sales of the
food and beverage company for the period grew from P5.7B to P6.3B pushing the RFM’s
net income to P525M from P508M. The company posted topline growth in most
businesses including ice cream, flour, pasta, milk and private label.
First Half
revenues of the ice cream category leader Selecta grew 11% year on year while institutional
sales including the bakery business expanded with an 8% increase.
Sales of RFM’s
other flagship brands - Fiesta pasta, Royal pasta, White King mixes and
Selecta Milk - also posted a strong 17% expansion for the six-month period.
Concepcion noted
that “the healthy growth of the branded consumer businesses brought about a 3%
growth in net income to P525M, despite the headwinds from softening prices of
flour and the rise in commodity prices such as wheat, paper and sugar, as well
as the peso depreciation.” For the full year 2018, the CEO expects RFM to
achieve a double digit growth in revenues and mid to high single digit income
expansion.
The CEO cited
that “the growth momentum we are now seeing in the pasta, ice cream and white
milk units will help shield RFM from the impact of soaring commodity prices.”
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.
“We continue to focus on our core strengths in flour, pasta, ice cream and milk,” Concepcion said. He added that “in addition to the big ticket projects of the ice cream and flour segments, we continue to invest in additional warehousing capacity for more efficient supply chain operations. And as we celebrate RFM’s 60th anniversary this year, we hope to make more meaningful contributions to the Philippine society thru quality yet affordable food products for the Filipino family.”
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