RFM Corp. saw flat earnings growth during the second quarter of 2018, as softer prices of flour and higher costs of raw materials offset its double-digit increase in revenues.
In a regulatory filing, the listed food and beverage firm reported that its net income attributable to equity holders of the parent reached P314 million during the April to June period, 1.2% higher than the P310 million it posted in the same period a year ago.
Revenues for the quarter accelerated by 13% to P3.5 billion, from the P3.1 billion in the same period a year ago.
This brought the company’s first half attributable profit to P525 million, up by 3% year-on-year, on the back of an 11.6% increase in revenues to P6.31 billion.
RFM attributed the higher revenues to the performance of its ice cream, flour, pasta, milk, and private label products. Its ice cream brand Selecta, for instance, generated an 11% increase in sales, while institutional sales including the bakery business went up by 8%.
The company’s other brands, including Fiesta and Royal for pasta, White King Mixes and Selecta Milk, collectively grew by 17% on a six-month basis.
The company earlier said it has committed to spend P1 billion in capital expenditures this year, P240 million of which will be used for upgrading its flour mill. — Arra B. Francia

RELATED ARTICLESMORE FROM AUTHOR