Food and beverage manufacturer RFM Corporation reported a 7 percent improvement in net income to P893 million in the first nine months of 2020 from the P836 million earned in the same period last year.
In a disclosure to the Philippine Stock Exchange, RFM said it delivered net revenue of P11.2 billion for the period ended September 2020 — a 4 percent growth compared to the P10.77 billion generated in the same period last year.
“The drivers of the group’s revenue growth were the flagship brands –Selecta Milk, Fiesta and Royal which also delivered the income improvement of the group,” RFM said.
For the third quarter of the year, RFMC said net income grew 10 percent to P282 million from the P256 million profit posted in July to September 2019. RFM attributed the improvement in its profit during the quarter to sustained sales growth in milk, pasta and sauces.
Group revenue for the quarter reached P4.11 billion, up by 8 percent over the P3.81 billion revenue posted in the same period last year.
RFM President Jose Ma. A. Concepcion III noted that “while the first quarter 2020 income slowed by 4 percent and revenue growth was only at 3 percent, second quarter 2020 performance reflect sustained sales growth in milk, pasta and sauces with improving topline for ice cream and institutional sales.”
“Figures for the first half 2020 show sales to reach P7 billion or 2 percent higher than 2019 while income is 5 percent higher at P611 million,” he said.
Concepcion explained that, “Consumer eating behavior during the lockdown has shifted food demand towards more nutritious food cooked at home. Our Selecta Fortified Milk, Fiesta and Royal pasta & sauces have benefited from this change in behavior. We also saw a surge in demand for hotcake and other mixes of our White King line.”
“The challenge during the lockdown was how to keep the production lines running to meet demand. On the other hand, the slowdown in ice cream in the lockdown period, as well as bread sales to fastfood and industrial clients, has been quickly recovering with the lifting of the ECQ,” he said.
Taken alone, RFM’s pasta, milk, sauce and White King sales for the first half of 2020 showed 18 percent growth and with improving ice cream sales, we can expect total RFM topline to post better growth in the coming months,” Concepcion added.