MANILA -- Listed food and beverage company RFM Corporation booked a 6-percent increase in profit in 2017 on the back of strong growth of its ice cream and pasta brands.
In a disclosure to the stock exchange on Monday, RFM said its net income reached PHP1.064 billion last year from PHP1 billion in 2016, as sales revenues reached PHP12.7 billion.
RFM President and Chief Executive Officer Jose A. Concepcion III said the company’s consumer branded businesses, such as Selecta ice cream and Fiesta pasta line, along with its institutional bunline business, led the top line growth amid continuing price pressures in the commodity flour business.
The ice cream joint venture with Unilever has just embarked on a PHP1-billion capital expenditure (CapEx) expansion to meet the growth requirements for the medium term.
The company said the CapEx of the ice cream business is self-funded by the joint venture, while the ongoing flour mill CapEx upgrade of PHP240 million has been fully funded by internal cash.
"RFM sees continued consumer consumption growth in the coming years and we are investing already to be able to take full advantage of that growth. For 2018, we see sustained growth in our ice cream and faster growth in the pasta business,” Concepcion said.
He added RFM also plans to push ready-to-drink milk lines for faster growth this year. (PNA)