RFM Corp., the food and beverage firm led by the Concepcion family, said its net income slightly grew during the first quarter of the year as logistical cost due to the port congestion has started to go down.
The company said its net income reached P179.4 million for the first quarter, higher by 8 percent over the same period last year.
This was achieved on the back of P2.6 billion in sales revenues, up by 15 percent from the previous year.
RFM President and CEO Jose Concepcion III said that sales came in strong for Selecta ice cream, Fiesta pasta and the newly acquired Royal pasta, “even for the first quarter, which is usually a lean quarter.”
Other product groups also showed volume growth, like White King cake mixes and Selecta milk, he said.
“Operationally, we were able to address certain distribution and logistics concerns, resulting to improved placements and trade servicing. We are still temporarily affected by higher warehousing and trucking costs as a result of external issues related to port and trucking franchise and rates,” Concepcion said.
“But we see these costs already starting to go down as we rationalize our supply and distribution system to sustain the growth momentum in sales and profits.” RFM said it expects to have more managed costs moving forward as it also gears up for a stronger growth momentum in the peak summer months for ice cream and pasta.