RFM CORP. grew its attributable profit by 6% in the first quarter of 2017, boosted by higher sales from its ice cream, pasta, flour, and milk products.
In a regulatory filing posted Thursday, the listed firm said it booked a net income attributable to equity holders of the parent of P211 million in the January to March period, higher than the P199 million it generated in the same period a year ago.
This followed a 10% increase in revenues to P2.8 billion, with the company noting a top-line growth across both its branded consumer and commodities segments.
“For 2018, we expect to sustain this strong first quarter momentum with the recent launch of our Selecta Fortified Milk TV campaign and upcoming marketing initiatives for our pasta, sauce and ice cream, over the course of 2018,” RFM President and Chief Executive Officer Jose A. Concepcion III said in a statement.
RFM’s Selecta ice cream brand delivered a 9% increase in revenues for the period. Institutional sales, which includes the bakery business was also up by 10% year on year.
Meanwhile, sales of its pasta brands Fiesta and Royal, combined with White King mixes and Selecta Milk clocked in a 10% growth for the period.
The ice cream and pasta maker will be spending P1 billion in capital expenditures this year to finance its joint ventures for the ice cream business. Portions of the 2018 capex will also be for investments in flour milling, supply chain, milk, pasta, and sauce.
The company is currently upgrading its flour mill for P240 million, funded by internally generated cash.
RFM is undertaking a P900-million share buyback program, with P446.39 million worth of shares already repurchased as of April 18.
Incorporated in 1957 originally as Republic Flour Mills, Inc., RFM’s business is divided into tow segments: the institutional segment for the flour, bakery, and other bakery products to institutional customers, and the consumer segment that manufactures and sells ice cream, milk, juices, pasta, and other rice-based mixes.
Shares in RFM gained 11 centavos or 2.37% to close at P4.76 each on Thursday. — Arra B. Francia
