MANILA, July 16 (PNA) — Food and beverage firm RFM Corp. expects to breach the Php1-billion net profit mark this year on the back of increased consumption spending amid elections and the country’s good macroeconomic environment.
“The next six months would be hopefully pretty good; sales would be very strong. And we know that next year is an election year so there will be a lot of spending towards Christmas (season),” said RFM President and Chief Executive Officer Jose A. Concepcion III.
He said the El Nino weather phenomenon, which is associated with warm weather, will also boost demand for its food products especially ice cream.
Concepcion was optimistic about achieving this year’s profit target after the company’s net income surged by 11 percent to Php472 million in January to June.
Its sales revenues also rose 10 percent to Php5.5 billion during the first six months of the year.
Concepcion said the company also aims to sustain revenue growth of 10 percent this year, bolstered by the projected 20 to 30-percent increase a year for consumer brands.
He noted that sales continued to come in strong especially for Fiesta and the new Royal pasta as well as Selecta ice cream.
In terms of revenue mix, Concepcion said branded, high-margin units comprise 65 percent; while non-branded commodities share the remaining 35 percent. (PNA)