MANILA, Philippines – Food and beverage company RFM Corporation saw an increase in its net income for the first half of the year on the back of improved sales.
The Concepcion-led firm posted a net income of P427 million, up 10 percent from the net income posted in the same period last year.
The higher income was attributed to the 5 percent increase in revenues for the first six months of the year.
RFM president and chief executive Jose Concepcion III said the second quarter sales growth was stronger than in the first quarter.
However, he noted that the company lost about 15-20 percent of sales and revenue growth could have been better if not for operational bottlenecks caused by the Manila truck ban and congestion at the Manila port.
He also said sales and revenues were affected by a shortage on delivery trucks resulting from an interim timing issue on the implementation of rules on franchised trucking services.
However, he said that despite these issues, the firm was able to post better profitability since their higher-margin core businesses performed better in the second quarter.
“The company was also able to manage its operating expenses, while cost of certain critical inputs were also tracking lower than previous periods,” Concepcion said.
He said “better numbers” are expected in the second half of the year.
“The port congestion and trucking issues should also be resolved to bring back normalcy in the flow of goods and lower the cost of operations,” Concepcion added.
RFM is the firm behind the brands Selecta, Royal, Fiesta, and Sunkist.