Higher prices dent earnings of food and beverage firm RFM

Higher consumer prices and the early rainy season dented the earnings of food and beverage company RFM Corp. in the year's first six months. In a report to the Philippine Stock Exchange on Friday, RFM said its net income slipped 46 percent to P213 million from P395 million in the same year despite a 7-percent improvement to P4.5 billion in topline sales. "This (lower net income) was attributed to the general economic slowdown since the first quarter this year due to rising commodity prices like wheat, sugar and milk as well as power and utilities cost, and this has significantly affected the margins...Consumer demand is generally soft compared to last year, and the summer was quite short with more rains this year," RFM said. Costs and expenses in the period, meanwhile, grew by about 25 percent to P1.72 billion from P1.38 billion. "RFM plans to focus on its core brands and leverage on their strengths. Selecta Ice Cream, a joint venture with world giant Unilever, is increasing its dominance in its industry with its market share approaching 70 percent, while the flour-based businesses led by White King Fiesta continues to improve its market leadership position in the spaghetti pasta category, now at 32 percent, from 27 percent just three months ago," the company said. - CMA/OMG, GMA News