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 Posts 16% Income Growth to P234M |
| Tuesday, May 06, 2008 |
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Food and beverage company RFM Corporation posted a stronger income performance of P234.3 million in 2007, or a 15.6% growth over the P202.6 million income the previous year.
Based on disclosures filed with the Securities and Exchange Commission, RFM said it manages to achieve higher profitability as it focused on executing its value creation strategies and cost reduction measures during the year.
RFM President and CEO Jose Conception said that "key to reaching RFM's income objectives were the introduction of higher value and innovative products that banked on RFM's brands' respective positioning in the market."
Conception said "Selecta Moo launched its richer chocolate drink product and basic fortified filled milk, while Sunkist launched its Hi-Juice beverages and iced tea drinks in more attractive and convenient plastic bottles. Fiesta pasta, with its new sizes and packaging, has made further inroads in the market making it a strong number 2 brand in the pasta category. Swift has also launched canned meaty corned beef and Rica Protina hotdogs that catered well to a broader segment of the market."
RFM also reported that Selecta ice cream, under a joint venture with Unilever, has expanded the whole ice cream category and in the process further enhanced its market leadership position in ice cream. Continuous products innovations with affordable pricing like the Selecta 3-in-1 ice cream, the Selecta Moo ice cream line, and various frozen novelties have brought life to a previously contracting ice cream market.
Conception also attributed RFM's strong performance to its flour division "which has exhibited healthy growth despite the serious wheat market situation due to better plant efficiencies and cost management.
The income growth was on back of a similar growth performance in Sales revenues. Consolidated sales for the whole RFM group amounted to P6.99 billion in 2007, a 13.8% growth compared to P6.14 billion in 2006 as the company focused on fewer but stronger products. |
