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 3-Quarter Income Up 34% |
| Monday, November 12, 2007 |
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Food and beverage firm RFM Corporation posted a net income of P149 million for the first three quarters of the year, an increase of over 34 percent from the P111 million recorded for the same period last year.
In its quarterly disclosure to the SEC, RFM said the latest results confirm the direction of the company towards sustainable profitability and growth.
"We are on the way to our third straight year of improving profitability, coming from the turn-around achieved in 2005," said Jose A. Concepcion III, RFM President & CEO. The company also reported overall sales growth of 20 percent, hitting total sales of P5.15 billion for the first nine months of the year compared to P4.30 billion for the corresponding period in 2006.
Concepcion attributed the positive trend to the continuing strong performance of its flour, baked goods and ice cream businesses, as well as to the product innovations, cost-containment and margin-improvement contributions of its milk, juice, meat and other businesses.
He cited significant sales growth in the first nine months for the company’s Sunkist juice and Selecta Moo milk products, Fiesta spaghetti, and Swift corned beef. Also contributing to the strong results were new products launched earlier this year, which included Sunkist high-juice and iced-tea in PET bottles, Selecta Moo ice cream, Selecta Choco Craze and fortified filled milk, and White King native cake mixes. At the same time, the company’s operating expenses as a percentage to sales continued to be kept under control, coming in at 19 percent this year as against 20
percent last year.
This enabled the group to offset the gross margin erosion arising from higher costs of major raw materials encountered this year, particularly in wheat, skimmed milk powder, and other agri-based raw materials.
Earlier the company reported that its Board of Directors had approved the sale of 766 million treasury shares by way of a follow-on offering slated early next year. RFM is building up its resources to take advantage of market opportunities for its products and to fund expansion moves for some of its brands as it marks its 50th year next year. |
