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RFM: 2014 Performance

RFM Corporation reported a 10% increase in net income to P863 million for 2014, driven by an 8% rise in revenues to P11.1 billion. Growth was particularly strong for Fiesta and Royal pasta in the last two months of the year as logistics issues improved. However, performance would have been better if not for ongoing port congestion and higher costs from additional warehouses and trucking due to supply issues. The company will focus on cost efficiencies while hoping authorities address constraints to improve the operating environment.

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47 views1 page

RFM: 2014 Performance

RFM Corporation reported a 10% increase in net income to P863 million for 2014, driven by an 8% rise in revenues to P11.1 billion. Growth was particularly strong for Fiesta and Royal pasta in the last two months of the year as logistics issues improved. However, performance would have been better if not for ongoing port congestion and higher costs from additional warehouses and trucking due to supply issues. The company will focus on cost efficiencies while hoping authorities address constraints to improve the operating environment.

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BusinessWorld
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RFM CORPORATION

NEWS RELEASE Feb 5, 2015

Ramon M. Lopez
0918 888 7333

RFMs 2014 Income Increases by 10% to P863 Million

Food and beverage company RFM Corporation reported yesterday a net income
of P863 Million for the full year of 2014, up 10% over the same period last
year. This was achieved on the back of P11.1 Billion in sales revenues last year,
higher by 8% over the revenues posted for the same period last year.
RFM President and CEO Jose A. Concepcion III said that growth particularly in
the Fiesta and Royal pasta operations accelerated especially in the last two
months of the year as logistics issues improved in time for the peak during the
Christmas holidays, partially offsetting the impact of an unusual weather
disturbance in December.
Almost all brands exhibited faster growth, especially Selecta ice cream, Fiesta
and the new brand Royal pasta, White King flour mixes, Selecta milk and the
institutional bread businesses. Concepcion, however, reiterated that the sales
and income performance would have been better if not for the Manila port
congestion which, while being reduced, still affected the timeliness of deliveries
and the cost of raw materials and products. Operational costs also temporarily
increased due to additional warehouses and higher trucking rates brought about
by shortage in providers.
All told, Concepcion added, RFM managed to find ways to improve the supply
and distribution system that sustained the growth momentum in sales and profits.
Efforts will be focused on how we can further improve cost efficiencies but we
hope the authorities immediately address the external supply chain constraints to
bring back a better operating environment for the business sector.

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