November 16, 2006

RFM posts 69 percent increase in third quarter earnings

RFM Corporation almost doubled its net income for the first nine months of the year thanks to strong growth in its flour and baked goods businesses and cost containment and margin improvement from the company's milk, juice, meat and other businesses.

In a statement sent to the Manila Times daily, RFM's profits rose 69 percent to P115 million (US$2.29 million).

RFM president Jose Concepcion III said The company, however, has its consolidated net sales remained flat for the first nine months of the year it "continues to replace marginal niche products with fewer but better-margin mass-market products".

Sales requiring cold storage facilities such as ice cream, chilled meat and others were also affected by super-typhoon Milenyo which hit in September, thus affecting market volume.

Its production of mass-market but quality food and beverage products would propel the company's growth strategy. 

RFM has recently launched Selecta Fortified Filled Milk, which it calls as the "people's milk." The ready-to-drink milk, the company said, contains all the nutrients of milk, in a high-protection aseptic package.

The company also produces pasta and flour mixes, ready-to-drink fruit juice and teas, processed and canned meats. Its ice cream business is in joint venture with Unilever, while it is also engaged in property development through its subsidiary, Philippine Townships Inc.