RFM sees single-digit profit growth despite bleak environment

MANILA, Philippines - RFM Corp., which makes Sunkist Juices and Swift hotdogs, expects to post “high single-digit growth in earnings" this year despite the bleak economic environment. The company, controlled by the Concepcion family, expects profits this year to breach 2008’s results since sales are seen to rise by nearly one-fourth. Earnings last year reached P245 million, five-percent higher than 2007’s P234 million. Profits “will not be less than the five-percent rise in net income last year," Jose Ma. Concepcion III, RFM president and chief executive officer, said at the sidelines of the company's annual stockholders meeting in Mandaluyong. Sales this year will likewise increase, replicating the 23 percent rise that the company enjoyed in 2008. For the first five months of the year, RFM's sales jumped 23 percent to P3.2 billion. An "exciting" line up of new products will soon be launched by RFM, Concepcion revealed. Sunkist Juices (including its iced tea flavors), Selecta Milk (particularly the fortified milk product lines), and the introduction of Vitwater (bottled water enriched with vitamins), boosted the company's sales. The company will also be spending some P500 billion in capital and working expenditures for this year. "Half of that will be financed by internal funds and the half through borrowings from banks. We are also planning to raise P500 million in bonds later this year," said Felicisimo M. Nacino Jr., RFM executive vice president and chief operating officer. RFM brands also include Sunkist, Selecta, Selecta Moo, White King and White King pasta. Selecta, which claims to corner 54 percent of the local market share, is a joint venture with multinational Unilever. RFM was one of the companies this year which held back on price increases, Concepcion said. Although he believes that RFM's share price is grossly undervalued at P0.30 each, the company has yet to announce a share buy-back program. - GMANews,TV