RFM Posts 12% Revenue Growth in First Half of 2018

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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