'Magnum' ice cream craze helps RFM scoop more profits
MANILA, Philippines - The summer heated up and so did the sales of Selecta's popular ice cream bar "Magnum."
On Monday, April 30, food and beverage company RFM Corp. reported that the strong demand for Magnum helped boost its first-quarter 2012 earnings by 30% to P130.3 million from P100.1 million in 2011.
RFM president and CEO Jose Concepcion said the company's total sales grew by a faster 16%, owing in part to the 37% growth in sales of unit Selecta, its joint venture with Unilever.
"This rate would be even higher if we look at March alone year-on-year, since it was the month we introduced the latest ice cream craze Magnum," he said.
Concepcion said that demand for the Belgian chocolate ice cream bar "has been beyond expectations."
"Stocks have been running out, the company is making arrangements to increase further supplies," he said.
However, Magnum was just one of the reasons for RFM's profit growth.
The company said easing costs of production inputs such as milk and sugar also lifted its bottom line.
It added that its "Fiesta" pasta business also performed well with 70% sales increase, while its White King brands of arroz cal do and champorado sustained sales momentum of 30%.
"We believe that stronger brand equity and product innovations have influenced the shift in buying pattern and frequency in a number of categories we participate in," noted Concepcion.
In full-year 2011, high costs pulled down RFM's net income by 19% to P503.8 million. - Rappler.com