MANILA, Philippines - RFM Corp. on Monday reported a 47% jump in profit to P440.6 million in the first 9 months of 2012, on the back of strong sales of Selecta and Magnum ice cream and White King Fiesta spaghetti.
RFM posted a 13% increase in sales to P7.85 billion during the January to September period.
RFM president and CEO Jose A. Concepcion III attributed the profit growth to the faster growth of its higher margin businesses, as well as lower commodity input costs.
"We are likewise benefitting from better yields and costings due to scale economies as we reach higher volumes in our key brands, such as Selecta ice cream, and Fiesta spaghetti," he said, in a statement.
The positive economic climate has also helped boost consumer spending, which is seen to further improve in the fourth quarter.
"As we see another Christmas season prior to an election year, we sense there is more generosity in the air. This will lead to continued growth practically in all the company's brands, led by Selecta ice cream, White King Fiesta pasta, Selecta milk and Sunkist juice," he said.
Sales of Magnum ice cream continued to grow. Concepcion said Magnum's share in the total Selecta sales mix is increasing, as it now appeals to a broader market.
White King Fiesta has expanded its spaghetti pasta market leadership position to 31.4% from 25% last year. "The consistently firm pasta quality at affordable pricing levels has made Fiesta more preferred among pasta brands," Concepcion said.
Other products such as all-purpose flour, hotcake and flour mixes, Arroz Caldo and Champorado have also cornered a share of the market.