RFM says Q1 net income up 8.4% on higher sales, better margins

Higher sales and better margins helped food and beverage manufacturer RFM Corporation post an 8.4 percent rise in net profit to P167 million in the first quarter of the year.

Sales revenue slightly rose to P2.24 billion from P2.22 billion a year earlier, the company said in a disclosure to the Philippine Stock Exchange Monday.

RFM president and CEO Jose A. Concepcion III attributed the higher income to better margins in core businesses and higher sales from higher margin products.

“The lower commodity input costs and managed operating expenses this year helped in bringing our cost levels down," he said.

A double-digit growth was recorded in RFM's consumer brands, offsetting the weaker flour sales during the period, Concepcion said.

"The priority for us is to grow the branded side of our business and we are encouraged as well by the increasing consumer off-take readings for our Fiesta pasta, White King cake mixes and Selecta Milk," he said.

The off-take reports track the actual sales to consumers recorded in the company's major trade accounts.

"Revenues from our newly acquired Royal pasta have just started to be sold under RFM only in February, and sales level has so far been higher than levels posted last year by the previous owner," Concepcion said.

He said the second quarter started strong with a double-digit growth in the milk, ice cream and pasta groups in April.
"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.

- GMA News