RFM targets expansion to hit P1.1-B profit goal

Food and beverage firm RFM Corp. is embarking on an aggressive expansion overseas to further boost its profit targeted to reach P1.1 billion this year. 

“Coming from P905 million (last year) to P1.1 billion, that’s double-digit (increase). That’s doable. Right now, we’re tracking that,” RFM Vice President and Chief Financial Officer Enrique Oliver Rey-Matias told reporters on the sidelines of the company’s stockholders meeting on Friday.

Matias expects company’s revenues and profit increasing in the second half of 2016 after posting second-quarter flat earnings due to operating expenses.

Its profit surged by 20 percent to P216 million in January to March quarter.

“In general, there’s a bump also in sales due to election spending… There’s the continuing consumer story of the Philippines, incomes are rising, we have a young population that’s willing to spend. Traditionally, we have better sales for the latter part of the year. We hope we’ll do better,” he said.

While focusing on the domestic market, Matias bared that the company was looking for more overseas markets “where there is a sizable Filipino community” it can export its products.

”It’s where the usual Filipino communities are: Middle East, US (United States), some in Europe, here in Pacific Islands… We are able to sell either through direct distributors or through consolidators so that one, we’re maximizing our sales to those communities,” he added.

Matias further said they were also keen on more markets in the Asean region as the regional economic integration went into effect.

Among the branded products which RFM markets are: White King cake mixes and flour-based products, Royal and Fiesta pasta and sauce, Sunkist fruit juices, Selecta milk-based products and Selecta ice cream under the joint venture with Unilever.