'Softer' costs help raise RFM earnings

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Costs,Help,Raise

FOOD and beverage manufacturer RFM Corp. on Friday said that it earned P650 million in net income for the first six months of the year, an increase of 16.7 percent from P558 million a year earlier.

'2024 looks to be a good year in terms of income growth as we are able to enjoy softer costs of raw materials,' RFM Chief Executive Officer Jose Ma. Concepcion III noted in the company's quarterly report.Sales went up by 4 percent from P9.2 billion to P9.5 billion due to continued lower input costs and operating leverage.The brand's pasta sauce and ice cream products sold well, which was not the case for flour given lower market prices of wheat.

'Our pasta business is also rolling out more innovations and we see that our Unilever RFM Ice Cream joint venture is able to sustain growth in 2024 with timely price adjustments to ensure affordability and healthy demand,' he added.RFM likewise announced that its P1.1-billion internally funded bakery plant in Silang, Cavite was now operational. It is RFM's second bakery plant.For the second quarter, RFM's net revenue grew by 6 percent to P5.2 billion from P4.

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