February 18, 2018, 6:01 am
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Food company’s profit up 6% in ’17

RFM Corp. reported a profit growth of 6 percent to P1.06 billion last year, from P1 billion the prior year, as revenues were flat at P12.7 billion. 

Jose Concepcion III, RFM president, said the company’s consumer branded businesses like Selecta ice cream and Fiesta pasta line, along with institutional bunline business, led the topline growth “amid continuing price pressures in the commodity flour business.” 

Revenues of ice cream category leader Selecta grew 13 percent year-on-year. 

Concepcion said the ice cream joint venture with Unilever has just embarked on a P1 billion capital expenditure expansion to meet the growth requirements for the medium term. 

The capital spending in the ice cream business is self-funded by the joint venture. 

RFM at the same time is in the midst of a P240 million expansion of its flour mills, funded by internal cash.

The strong ice cream revenue growth andimprovement in the pasta branded businesses however were mitigated by the softer institutional sales as flour prices remained soft. 

“With resilient consumer branded businesses, RFM continues to see healthy income growth and as a result, we have just recently declared a P300M cash dividend which is just the first tranche of the 50 percent dividend payout of our 2017 P1.06B net income, as well as another P300M budget for our continuing share buyback program,” said Concepcion. 

“RFM sees continued consumer consumption growth in the coming years and we are investing already to be able to take full advantage of that growth,” he added.

For this year, Concepcion expectsto see sustained growth in the ice cream and faster growth in the pasta businesses. 

He also said RFM plans to push its ready-to-drink milk lines for faster growth this year.
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