MANILA, Philippines – Food and beverage company RFM Corp. said it would spend P1 billion for capital expenditures (capex) in 2013, 186% higher than its P350-million capex in 2012.
The capex for the year will cover the expansion of its pasta and bread manufacturing operations and ice cream distribution network, as well as the transfer of its milk and juice facilities to Cabuyao, Laguna.
“We have to sustain our leadership in cost-efficiencies and productivities to be able to strengthen RFM brands’ long-term value-for-money proposition to Filipino consumers,” said RFM President and CEO Jose Concepcion III.
RFM’s products include Selecta ice cream and milk, Fiesta pasta, and Sunkist juice.
Selecta ice cream continued to grow its market share to a dominant position of 76%, while Fiesta pasta kept a 28% market share. RFM also reported that sales of Selecta milk and Sunkist juice drinks continued to grow faster than industry.
RFM said it posted a net income of P315.2 million in January to May, up 32% over the same period last year.
This was on the back of consolidated sales revenues of P4 billion, slightly down 6.7%, since RFM’s former Swift meat business was no longer part of consolidated sales this year.
“As we upgrade our supply chain capabilities, we shall continue to build on the very good momentum in terms of brand equity for Selecta ice cream and Fiesta pasta, through continuous marketing support and product innovations. We expect these efforts to lead to higher purchase frequency and per capita consumption that will lead to growing the market size,” Concepcion said. – Rappler.com