Despite supply chain constraints, Philippine food and beverage company RFM Corp. reported a net income of P863 million for 2014, 10% higher than the P805 million recorded in 2013.
This was achieved on the back of P11.1 billion in sales, up 8% from the same period last year.
RFM president and chief executive officer Jose Concepcion III in a statement said that growth, particularly in the Fiesta and Royal pasta operations, accelerated especially in the last two months of the year as “logistics issues improved in time for the peak during the Christmas holidays, partially offsetting the impact of an unusual weather disturbance in December.”
Almost all brands, especially Selecta ice cream, Fiesta and the new brand Royal pasta, White King flour mixes, Selecta milk, and the institutional bread businesses, exhibited faster growth. Concepcion, however, reiterated that sales and income would have been better if not for the Manila port congestion, which has somewhat eased but “still affected the timeliness of deliveries and the cost of raw materials and products.
“Operational costs also temporarily increased due to additional warehouses and higher trucking rates brought about by shortage in providers.”
Concepcion said despite the constraints, “RFM managed to find ways to improve the supply and distribution system that sustained the growth momentum in sales and profits.
“Efforts will be focused on how we can further improve cost efficiencies but we hope the authorities immediately address the external supply chain constraints to bring back a better operating environment for the business sector.”
Latest data from the Philippine Ports Authority show that current utilization at Manila ports remains high after consecutive holidays since late last year, though lower than before the five-day Papal visit in mid-January. The government is still calling out to cargo owners to pull out as many containers as they can, especially on weekends.
Trade Secretary Gregory Domingo, however, recently said port congestion has eased. A member of the Cabinet Cluster on Port Congestion, Domingo said current truck movements in Manila ports average 11,000 trips per day, higher than the target minimum of 8,000 trips a day. Before Manila City’s truck ban was imposed, average daily truck movement in Manila ports was 5,000. – Roumina Pablo
Photo from www.rfmfoods.com
