RFM net income up by 10% to P1B in 2016
RFM Corporation reported a 10-percent growth in its net income last year to P1 billion from P905 million in 2015.
In a disclosure to the stock exchange, RFM said “profitability was driven by its branded consumer products focusing its efforts on higher margin core businesses.” The company said it “remains bullish on the market leadership strength of its core brands Selecta, Fiesta, and Royal.”
RFM’s revenues totalled P12.7 billion from P12 billion in 2015. The cost of sales and services was trimmed down to P7.4 billion from P7.5 billion but its selling and marketing expenses increased to P2.8 billion from P2.3 billion and general and administrative expenses inched up to P1.01 billion from P993 million.
The bulk of RFM’s revenues were from its consumer business at P9.1 billion followed by its institutional business at P3.6 billion.
RFM said it has a 33-percent market share in the pasta business in terms of volume and 35 percent in terms of value. Its pasta brands are Fiesta and Royal. In the ice cream business, RFM’s joint venture with Unilever, Selecta Ice Cream, has a 72-percent market share.