RFM embarked on thorough product R & D and market research, as it re-strengthened the market positioning of brands with evidently enormous potentials.
With full, clear-sighted confidence, we expect these to become our market leaders. RFM Corporation believes that building brands for today is the surest way to build the business for tomorrow. |
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| RFM 2009 Income Grows 49%
To P365-M |
| Monday, February 01, 2010 |
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Food and beverage company RFM Corporation reported a healthy 49% climb in its 2009 net income, performing better than the economy. Based on its unaudited financial report, RFM posted a net income of P365 million for the year, coming from P245 million the year before. In a disclosure to the Securities and Exchange Commission, RFM reported its financial performance for the year, with net sales registering at P7.97 Billion, up 6% over P7.55 billion in 2008. Operating income came in at over P613 million in 2009.
RFM President and CEO Joey Concepcion credited the strong performance to better gross margins as major raw materials cost softened towards the second half of the year. He also credited the companys lower-cost operating platform with the transfer to more integrated, modern and efficient production facilities for its pasta, beverage and meat products.
Concepcion, who is also the founder of the Go Negosyo advocacy, a lead proponent in the push towards a positive and enterprising mindset among Filipinos, continued to express optimism and confidence in RFM moving forward. He said that RFM sales should continue to grow well ahead of market growth, as the company promotes a more entrepreneurial way of thinking within the organization. This has led to more relevant and affordable innovations and higher value-for-money food and beverage alternatives to the consumer.
In particular, we are happy to note that our Fiesta spaghetti continues to strengthen its market leadership based on recent retail audits because of its strong value proposition to Filipino consumers, Concepcion said. He said the Fiesta brand is now the companys second market leader in the RFM Group, after the Selecta brand which has remained the number one ice cream brand in the country, with an even stronger 58 per cent market share as of end-2009.
Meantime, our Swift meat and Selecta milk products have also registered high double-digit sales growth in 2009, with stronger consumer pull, new product introductions and deeper distribution penetration, Concepcion added.
The companys new Health Beverage Line has also shown encouraging performance, he said. This was led by innovative products like Vitwater (water with vitamins and benefits), Alo Youth and Alo Green Tea (the first-mover local brand in the aloe vera-filled drink category), and Sunkist Healthy Heart orange juice, (a breakthrough orange drink with plant sterols that reduce cholesterol). |
