RFM earnings breach P1-billion mark in 2016
STRONG SALES of Royal pasta and Selecta ice cream helped RFM Corp.’s profit hit the P1-billion mark in 2016.
In a regulatory filing, the RFM reported a net income of P1 billion for 2016, a 10% increase from P904.93 million in 2015.
“RFM’s profitability was driven by its branded consumer products focusing its efforts on the higher margin core businesses. The company remains bullish on the market leadership strength of its core brands Selecta and Fiesta, and Royal,” the Concepcion-led food and beverage firm said.
Consolidated revenues jumped 6% to P12.7 billion last year from 2015’s P11.98 billion.
RFM said it remained the biggest pasta manufacturer in 2016 with 33% volume share and 35% value share for its Fiesta and Royal brands. It attributed Fiesta’s strong performance to the launch of a pasta and sauce dish pack called “Fiesta Spaghettipid,” sold for P59, in the fourth quarter of 2016.
Also, RFM said its ice cream business through Selecta Ice Cream, under the joint venture with Unilever Philippines, Inc. dominated the market with a total share of 72%. This was due to the launch of Chocolate and Pinoy flavors for summer and cake-inspired flavors during the Christmas season.
Shares in RFM added 1.26% or six centavos apiece to close at P4.82 on Wednesday. -- Arra B. Francia