RFM CORP. posted an 18% increase in third-quarter attributable net income, driven by higher sales and improved margins across its food and beverage business.
“Over the past years, RFM has invested in capacity expansion in its milk and bread lines and funded these capital expenditures with internal cash,” RFM President and Chief Executive Officer Joey Concepcion III said in the company’s quarterly disclosure to the Philippine Stock Exchange.
“At the same time, the multi-year upgrade and expansion of production capacity in our Selecta ice cream joint venture with The Magnum Ice Cream Company, Inc. will be financed through loans,” he added.
Attributable net income rose to P565 million in the July-to-September period from P480 million a year earlier. Consolidated net income reached P566 million, RFM said in its filing.
Revenue increased 17% to P6.36 billion, while gross profit climbed 24% to P2.42 billion. Gross margin improved to 38% from 36%.
Operating income rose 11% to P677 million as higher gross profit offset increased selling and marketing expenses.
Selling and marketing expenses rose to P1.7 billion from P1.20 billion, while general and administrative expenses fell to P49 million from P155 million.
Income before tax increased to P666 million from P623 million. Income tax provision declined to P100 million from P143 million.
RFM said higher revenue was supported by its consumer and institutional businesses.
For the first nine months, attributable net income rose 10% to P1.38 billion from a year earlier.
Revenue increased 11% to P16.86 billion, while operating income grew 6% to P1.68 billion.
RFM owns the Royal and Fiesta pasta and sauce brands, Selecta Milk and White King mixes. It also holds a 50% stake in Unilever RFM Ice Cream, Inc., which markets the Selecta, Magnum and Cornetto brands.
RFM shares rose 3.28% to P5.35 each. — Alexandria Grace C. Magno