RFM Corp. saw its revenues increase by 11% in the first three months of 2019, thanks to higher institutional sales of its flour, bread, pasta, and milk products.
In a statement issued Tuesday, the listed pasta and ice cream maker said revenues hit P3.1 billion in the first quarter of the year.
“We continue to see healthy consumer appetite for our Royal and Fiesta pasta and sauce as well as in our Selecta Milk RTD (ready to drink) for the first three months of the year,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III said in a statement on Tuesday.
RFM’s flagship brands include Selecta for ice cream and milk, Fiesta and Royal for pasta, and White King for mixes. The company noted that its ice cream unit — typically one of its growth drivers — saw softer sales due to the late observance of Holy Week this year.
“The late Holy Week in April this 2019, compared to March in 2018, softened our ice cream unit’s usual strong growth rate in the first quarter, but April sales are quite robust. Flour and institutional bread sales are growing at double-digit rates as well.”
The company did not disclose its first quarter net income figure as of this writing.
Mr. Concepcion noted that they continue to monitor the prices of raw materials such as sugar, packaging, milk, and wheat.
“Hopefully, we see better pricing in these items in the coming months so manufacturers like RFM can sustain strong earnings growth,” he said, adding that the stronger peso this time around compared to the latter part of 2018 should help reduce input costs.
Incorporated in 1957, RFM also engages in non-food businesses, including barging services and leasing of commercial or office spaces for its operating divisions.
Shares in RFM rose by a centavo or 0.21% to close at P4.80 each at the stock exchange on Tuesday. — Arra B. Francia