RFM earnings up 7% in first quarter

MANILA, Philippines — RFM Corp. reported a seven percent rise in net income to P211 million in the first quarter on the back of higher sales.

Sales increased to P2.8 billion from P2.55 billion a year ago.

RFM president and chief executive officer Jose Concepcion III said the company posted topline growth in all businesses including ice cream, flour, pasta, milk and private label.

First quarter revenues of the ice cream category leader Selecta grew nine percent year on year while institutional sales including the bakery business rebounded with a 10 percent increase.

The combined sales of RFM’s other flagship brands - Fiesta pasta, Royal pasta, White King mixes and Selecta Milk - also registered a 12 percent expansion for the quarter.

Concepcion expects the company to continue with its policy of a 50 percent dividend payout of recurring net income, and to pursue its ongoing share buyback program.

“For the coming years, RFM’s growth shall be supported by our ongoing P1 billion capex for our ice cream business joint venture as well as our capex investments in flour milling, supply chain, milk, pasta and sauce. For 2018, we expect to sustain this strong first quarter momentum with the recent launch of our Selecta Fortified Milk TV campaign and upcoming marketing initiatives for our pasta, sauce and ice cream, over the course of 2018,” Concepcion said.

Incorporated in 1957 as Republic Flour Mills, RFM is known for nurturing and growing heritage local brands like Pop Cola and Sarsi, under its previous subsidiary Cosmos Bottling Corp., and Selecta ice cream, now under the joint venture with Unilever.