RFM income surges 51% to P320 million in Q1

MANILA, Philippines — RFM Corp. grew its net income by 51 percent in the first quarter to P320 million as some of its household products remained steady while its ice cream business posted a rebound.

RFM president and CEO Jose Concepcion III said RFM’s portfolio continued to deliver sales growth with the return of normal consumer behavior following strict lockdowns.

Concepcion sees headwinds in the form of commodity and raw material price hikes that can dampen demand and squeeze margins.

“But the coming election spending should provide a good shot in the arm for consumer spending in the latter part of 2021,” Concepcion said.

Total sales reached P3.3 billion, up four percent from the previous year.

RFM’s consumer brands Selecta Fortified Milk and Fiesta and Royal pasta and sauce brands grew nine percent from year-ago levels alongside its ice cream business.

Likewise, its White King hotcakes and bowl mixes business also grew three percent for the quarter.

Concepcion said RFM would strive to be more efficient in the value chain process to cushion the impact of the higher prices of oil, milk, wheat, paper and other costs of production.

To grow its net income for 2021 amid inflationary pressures on raw materials, the company needs better volume leverage and efficiency in operations, he said.

RFM plans to push through with its 60 percent cash dividend payout from its net income even as the company continues to strengthen its core brands for faster organic growth of gross sales revenue.

Article and Photo originally posted by Philippine Star last May 8, 2021 12:00am and written by Iris Gonzales.