MANILA, Philippines - RFM Corp., the food and beverage company of the Concepcion family, said its profits jumped by a 10th last year, but came up short in meeting its full-year target.
In a statement, the maker of Selecta ice cream and Fiesta pasta said its net income in 2014 grew 10 percent year-on-year to P863 million as sales accelerated during the Christmas holiday season.
The company, however, failed to reach its full-year profit goal of at least P950 million as issues such as the Manila truck ban and port congestion disrupted its supply operations.
Likewise, the listed food and beverage firms also fell slightly short of attaining its P12 billion consolidated sales target for 2014.
Still, RFM said sales revenues last year rose eight percent to P11.1 billion.
RFM president and chief executive officer Jose A. Concepcion III said sales and income performance would have been better if not for the Manila port congestion which, while being reduced, still affected the timeliness of deliveries and the cost of raw materials and products.
Concepcion said operational costs also temporarily increased due to additional warehouses and higher trucking rates brought about by a shortage in providers.
Fortunately, he said growth, particularly in the Fiesta and Royal pasta operations accelerated in the last two months of the year as logistics issues improved in time for the peak Christmas holidays.
Concepcion said the strong sales was also able to partially offset the impact of an unusual weather disturbance in December.
“All told, RFM managed to find ways to improve the supply and distribution system that sustained the growth momentum in sales and profits,” he said.
The company said a faster growth was seen year-on-year in almost all brands, especially Selecta ice cream, Fiesta and new brand Royal pasta, White King flour mixes, Selecta milk and its bread businesses.
“Efforts will be focused on how we can further improve cost efficiencies but we hope the authorities immediately address the external supply chain constraints to bring back a better operating environment for the business sector,” Concepcion said.