RFM Corp. on Monday reported a 28 percent jump in first semester income to P387 million on the back of improved consumer spending.
In a disclosure to the Philippine Stock Exchange, president and CEO Jose A. Concepcion III attributed the income growth to better margins in core businesses as well as relatively better sales of higher margin products in the second quarter.
“The lower commodity input costs this year, such as for sugar and wheat, helped in bringing cost levels down, as well as our ability to pass on the gains to higher value-added products in Selecta ice cream and Fiesta pasta,” Concepcion said.
Stronger consumer spending was also felt in some categories, especially in the company’s Sunkist beverage and Selecta milk products.
“The summer months were also pretty strong for our Selecta ice cream and Fiesta pasta, which are products mostly consumed during graduation periods, fiestas and other celebrations. We expect higher peaks, however, in the coming fourth quarter when consumer spending starts to go up until the Christmas season,” he added.
“For RFM, while we remain confident of the market leadership strength of our power brands Selecta and Fiesta, we never stop reinforcing our marketing strategies with timely and relevant product innovations that excite the Filipino consumers.
“Our business fundamentals remain robust as we continue to maximize every opportunity to grow even the market categories where we participate, banking also on the strength of our brands’ equity”, Concepcion said.
To sustain its profit growth, RFM said its exercising vigilance in eyeing acquisitions and strategic partnerships. — VS, GMA News