RFM Corp., the flagship food and beverage firm of the Concepcion-Araneta family, posted a net profit of P234.3 million last year, up 15.6 percent from P202.6 million in 2006, due to the successful launch of new products and cost-reduction measures implemented.
Consolidated sales rose 13.8 percent to P6.99 billion from P6.14 billion in 2006 as the company focused on fewer but stronger products.
“The key to reaching RFM’s income objectives were the introduction of higher value and innovative products that banked on the RFM brands’ respective positioning in the market,” company president and chief executive officer Jose Concepcion III said.
Concepcion said the firm’s flour division likewise contributed to the significant growth in net income. The flour division has exhibited healthy growth despite the serious global wheat market situation due to better plant efficiencies and cost management, he said.
Among the products launched last year include Selecta Moo’s richer chocolate drink product and basic fortified milk, Sunkist’s Hi-Juice beverages and iced-tea drinks in attractive and convenient plastic bottles, new sizes and packaging of its Fiesta pasta and Rica Protina hotdogs.
Selecta, an ice cream business jointly owned by RFM and Unilever, has expanded its whole ice cream category which further strengthened its leadership in the industry. “Continuous product innovations with affordable pricing like the Selecta 3-in-1 ice cream, the Selecta Moo ice cream and various frozen novelties have brought life to a previously contracting ice cream market,” RFM said in a statement.