RFM reports P683-M net income for 3Q of 2016
Food and beverage company RFM Corporation reported a net income of P683 million for the first nine months of 2016, higher by 9 percent over the same period last year.
Total revenues reached P8.73 billion, up by 4 percent from P8.41 billion revenues posted for the same period last year, the company said in a disclosure submitted to the Philippine Stock Exchange yesterday.
Sales continued to pose strong growth for the consumer group which includes ice cream, Fiesta pasta and Selecta Milk. Selecta Ice cream sales sustained its double-digit rise behind the push for availability, affordability and visibility.
The P59 pasta-and-sauce dish TV campaign during the third quarter supported Fiesta pasta’s momentum. Likewise, RFM’s Royal pasta brand also launched its P135 pasta-and-sauce spaghetti dish bundle that improved topline, the company said.
Selecta Milk also continued to post strong growth behind strong sales of Selecta white milk line.
But soft prices in the flour business weighed down on total company revenue growth for the nine-month period, it added.
In addition, the discontinuation of traded products under Dole brand offset growth in the consumer business, albeit to a small extent only.
RFM said it expected to sustain its 9 percent income growth for the last quarter of the year, supported by the launch of the Royal pasta-and-sauce dish pack, as well as the present momentum of Fiesta pasta, Milk and Ice cream sales.
The group revenue for the third quarter of 2016 reached P2.96 billion, around 2 percent higher than P2.91 billion revenues for the same period last year. This has resulted in a higher net income of P175 million, which is 12 percent higher compared to the P156 million for the comparative period last year, RFM said.
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