Food and beverage company RFM Corporation made P137.9 million in net income for the first quarter of 2010, putting it well on the way to its target of a minimum of P500 million in net income for this year.

In a report to the RFM board yesterday, RFM President and CEO Jose A. Concepcion III said the first quarter results represent a turn-around from the loss of P19.6 million for the same period last year.

“This is a very good start, considering that in the food business the bulk of sales and income actually come in during the last half of the year,” Concepcion said.

The RFM board approved yesterday the audited financial statements of the company for 2009, confirming the achievement of P365 million in net income, a hefty 49 per cent increase from the P245 million reported in 2008.

In its audited report, RFM said total sales reached P8.33 billion for 2009, a growth of over 10 per cent from P7.55 billion for 2008.

The RFM Board also approved a P50 million cash dividend to all shareholders, with record date of May 13, 2010 and payment date of June 8, 2010.

“The strong results for 2009 validate the decision of RFM to focus on food and beverage alone,” Concepcion said. He cited the company’s recent moves to disengage itself from the property development and poultry businesses, both of which have been dividend out directly to the shareholders to allow them to pursue their own plans.

Concepcion said these improving results are expected to continue further in the coming years. In the first quarter of 2010, he said the company posted net sales of P1.97 billion, up by 9% over P1.81 billion in 2009.

He attributed the improving results to the strong performance of Selecta ice cream, which has exhibited phenomenal growth in the first quarter, unprecedented for a company that is already the dominant market leader in ice cream. Concepcion added that Selecta, which is a joint venture with Unilever, will become an increasingly big contributor to the top-line and bottom-line numbers of RFM.

He also cited the significant market inroads being posted by another RFM product, Fiesta spaghetti, which has become the leading spaghetti brand in the country on the back of its value-for-money proposition to consumers and marketing campaigns.

Concepcion also expressed optimism that the company’s launch of an array of first-mover health beverage in the market will soon pay off for RFM. These include Vitwater, the first bottled water with functional benefits in the local market; Alo Youth and Alo Green Tea, the first ready-to-drink juice and tea with mouthfeel from aloe vera; and the innovative Sunkist Healthy Heart orange juice, the first refreshing drink to reduce cholesterol levels.

He said the company is fully supporting the growth prospects of its leading products with the necessary investments in brand-building and capital expenditures.