RFM nets P682 M in 2012

MANILA, Philippines - Food and beverage company RFM Corp. reported in a disclosure yesterday to SEC and PSE that it finished the year 2012 with a P682-million net income, or a 34-percent income growth over the previous year’s P508-million net income. 

This was on the back of an 11-percent sales growth to P11.1 billion for the period.

With stronger cash flows from its business units and the proceeds from its recent disposal of the meat business, RFM said it is paying off in advance about P1 billion of its long term loans.

RFM resident and CEO Jose A. Concepcion III credited the accelerated income growth to stronger sales of its higher margin businesses. 

“The lower commodity input costs this year, such as for milk, wheat and sugar, were also important in keeping the cost levels down, as well as better yields due to scale economies as we reach higher volumes in our key brands, such as Selecta ice cream, and Fiesta spaghetti,” he said.

Concepcion mentioned the benefits from having a positive economic climate that further boosts consumer confidence and spending. This led to continued growth practically in all the company’s brands, led by Selecta ice cream, Fiesta pasta, White King cake and sauce mixes, Selecta milk and Sunkist juice.

The growth momentum is expected to continue this year with a bullish macro environment, being a mid-term election year, and expectation of another rating upgrade for the country.  Fund managers and investors have also been bullish   on the country and several consumer-oriented companies like RFM. 

“It will be a more exciting year for Selecta and Fiesta as we introduce more product innovations and build-up brand equity,” Concepcion said. 

Moving forward, Concepcion also revealed the company’s intent to accelerate its growth organically and through possible acquisitions and strategic partnerships.