Monday, 9 November 2009

RFM posts 78% jump in 9-month net profit

By Doris Dumlao
Philippine Daily Inquirer
http://business.inquirer.net/money/topstories/view/20091108-235034/RFM-posts-78-jump-in-9-month-net-profit

THE Concepcion family’s RFM Corp. reported a 78-percent growth in net profit in the first nine months as the softening of major raw material prices and improved plant efficiency boosted margins despite some moderation in consumer spending.

RFM posted a net income of P282.2 million from January to September. For the third quarter alone, the net profit amounted to P147.6 million, up 453 percent from a year ago.

The decline in input costs alongside the softening of global commodity prices as well as improvement in plant efficiencies boosted its gross margin to 28 percent from 23 percent during the same period last year.

RFM has now overtaken last year’s sales of P5.4 billion by P380.1 million, coming right off the heels of a 22-percent expansion in sales during the second half of the year.

Despite the reported weakness in the consumer market, RFM expressed confidence that it would continue to gain market share and boost profitability for the remainder of the year alongside its goal of providing higher value-for-money food and beverage alternatives to the consumer.

Fiesta spaghetti has maintained its position as market leader. The Fiesta brand is the company’s second market leader, following the Selecta brand that has continued to dominate the Philippine ice cream market with a market share of more than 50 percent.

RFM is also optimistic in the growth performance of Vitwater, or water with vitamins and benefits, which was recently launched as a first-mover in the vitamin-enriched water category and endorsed by Filipino boxing icon Manny Pacquiao.

The company is also preparing to roll out an array of new products in different market categories that are, in turn, expected to contribute significantly to overall company sales and improved margins.

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