RFM nets P137.9 million in 1st quarter

MANILA, Philippines - RFM Corp., a food and beverage conglomerate owned by the Concepcion-Araneta family, posted a net income of P137.9 million in the first quarter this year, a reversal of the P19.6-million loss incurred in the same period a year ago.

In a financial report submitted to the Philippine Stock Exchange, RFM said net sales rose nine percent to P1.97 billion, mainly due to the steady strong performance of most of its product lines.

“This is a very good start, considering that in the food business the bulk of sales and income actually come in during the last half of the year,” said Jose A. Concepcion III, president and chief executive officer of RFM.

Concepcion said he is optimistic the company would sustain its strong positive performance for the rest of the year with net earnings seen to hit P500 million this year, up 37 percent from P365 million in 2009. Total sales rose 10 percent to P8.33 billion.

The increased income was also attributed to the phenomenal growth of Selecta, the country’s market leader in ice cream.

Concepcion said Selecta, which is a joint venture with Unilever, will become one of the major contributors to the top-line and bottom-line numbers of RFM.

He also cited the significant market inroads posted by the Fiesta pasta brand which has become the leading spaghetti brand in the country on the back of its value-for-money proposition to consumers and marketing campaigns.

“The strong results for 2009 validate the decision of RFM to focus on food and beverage alone,” said Concepcion. RFM recently divested from the property development and poultry businesses by way of dividends to the shareholders to allow them to pursue their own plans. 

Concepcion also expressed optimism that the company’s launch of an array of first-mover health beverage in the market will soon pay off. These include Vitwater, the first bottled water with functional benefits in the local market; Alo Youth and Alo Green Tea, the first ready-to-drink juice and tea with mouth-feel from aloe vera; and the innovative Sunkist Healthy Heart orange juice, the first refreshing drink to reduce cholesterol levels.

He said the company is fully supporting the growth prospects of its leading products with the necessary investments in brand-building and capital expenditures.