The firm said this year's capital spending would substantially rise from the PHP350 million (US$8.07 million) spending last year in order to cover the expansion in pasta operation and ice cream distribution infrastructure.

RFM is also spending for bread-making operations, distribution centres and the transfer of its milk and juice beverage facilities to Cabuyao, Laguna.

RFM likewise reported that its interim January-to-May performance net income for the period reached PHP315.2 million (US$7.25 million), which grew by 32 % over the same period last year.

This was on the back of consolidated sales revenues of PHP4 billion (US$92.17 million) for the same period, down by 6.7 % year-on-year, as RFM's former Swift meat business was no longer part of consolidated sales this year. The meat business was earlier sold to the Century Tuna group of the Po family.

Jose Concepcion III, RFM president and chief executive officer, said income growth was sustained with better margins from its production processes, due to the easing of commodity cost inputs such as milk and sugar, as well as efforts to cut processing costs, improve yields and bring down fixed overhead expenses.

RFM continued to strengthen further its supply chain competency to stay ahead of competition, Concepcion said, adding that the overall economic growth and sound fundamentals remained encouraging for consumer-oriented companies to build on its operations' capabilities.

He also reported that RFM's brands like Selecta Ice Cream, a joint venture with multinational giant Unilever, and Fiesta pasta have maintained their strong market leadership in their respective categories. Selecta ice cream continued to grow its market share to a dominant market position of 76 % level, while Fiesta pasta kept a 28 % market share in the pasta market, he said.

As a strategy, Concepcion said RFM was to give priority to its brand leaders, in terms of resource allocation and support to keep their competitiveness in the market.

RFM also reported that sales of Selecta milk and Sunkist juice drinks continued to grow faster than their respective category growth. These came about as the efforts in these brands were refocused to more responsive market segments, supported by product repackaging, aggressive merchandising, advertising and trade-related programs.