RFM reports P150-M loss for first quarter

RFM Corp., the food and beverage concern of the Concepcion family, incurred a net loss of P150 million for the first quarter this year as against the P6.25-billion profit recorded a year ago.

RFM’s 2002 first quarter profit included a one-time gain of P6.5 billion from the sale of the Concepcion family’s entire shareholdings in Cosmos Bottling Corp. to San Miguel Corp. Without this, the company would have incurred losses.

Given the continuing difficulties in the chicken business due to low selling pries, consolidated net sales decreased by two percent to P1.89 billion from P1.93 billion.

However, RFM’s Branded Food Group reported an 11-percent growth in net sales due to aggressive marketing campaigns launched for the past several months to boost profitability.

Despite more active marketing spending, the company’s operating loss declined 21 percent from P240 million last year to P190 million this year, mainly as a result of RFM’s cost cutting measures and manpower reductions.

As of end-March this year, the firm’s consolidated assets decreased by nine percent to P11.2 billion from P12.35 billion.

During the quarter, RFM introduced the new ready-to-drink Selecta Moo Sweetmilk, which is priced similarly as powdered milk, and the Swift Sweet and Juicy hotdogs.

RFM expects to sustain its brands’ growth momentum as effective marketing support and enhanced sales distributor infrastructures are set in place.

During the quarter, RFM introduced the new ready-to-drink Selecta Moo Sweetmilk and the Swift Sweet and Juicy hotdogs.

To boost sales, RFM will continue to strengthen its branded products in the hope of coming up with another winning brand such as Cosmos. With the sale of Cosmos, RFM is now forced to build up remaining brands such as Swift, Selecta and Sunkist.

Aside from Selecta and Swift, RFM is also the maker of Sunkist juices, Fiesta pasta and White King flour.

Swift controls some 21 percent of the dressed chicken market, second only to San Miguel, which controls 33 percent.

With growing demand for the Selecta brand by Filipinos living abroad, RFM has started exporting its ice cream to the United States and is negotiating with Unilever to help it in the distribution of the product.

Unilever, which is RFM’s joint-venture partner in Selecta, controls some 70 of the world’s biggest ice cream brands.

RFM said exports, if sustained, will increase net sales this year.

RFM’s businesses also include franchising and realty development. It owns the Little Ceasar Pizza, Sunroast and Dairy Queen franchises. Through wholly-owned subsidiary Philippine Townships Inc. (Philtown), RFM has a P250-million investment in high-rise condominium building One Mckinley Place Inc. at the Bonifacio Global City.

Philtown handles the food firm’s property development activities. It was created in 1995 to develop RFM’s underutilized 400-hectare assets located mostly in Laguna and Batangas.

Last year, Philtown forged a partnership with Malaysia’s Iglo Sdn. Bhd. for the operation of logistics service and cold chain facilities. – Zinnia dela Peña