Major food and beverage conglomerate, RFM Corp. has received board approval to allocate Pesos 1.2 billion (US$21 million) as capital expenditure to expand the production capacities of the company’s milk, consumer and institutional businesses for future growth.
The allocation is one of the company’s biggest since its purchase of the Royal pasta brand in 2014. RFM CEO Jose Ma Concepcion said, “This capex is expected to support the double-digit growth of our Selecta Milk offerings as well as support the growing consumer and institutional businesses.”
RFM reported an impressive 17% growth in sales for the first half of 2022, as it was buoyed by its ice cream, milk and institutional businesses. Concepcion said the company is doubling down its support for the milk and its other high growth segments that will drive the topline of RFM in the next 5 years.
He added, “The investment into more production capacity for milk and our other high growth business segments will support RFM’s sales growth momentum even as there are uncertainties in the global economy. We have been carefully passing on the cost of higher inputs, and also tightening on expenses to manage our margins.”
RFM Corp. is the producer of Selecta Milk, Royal and Fiesta pasta and sauces, and White King bakery mixes. RFM also holds a 50% share in Unilever RFM Ice Cream joint venture which manufactures Selecta, Cornetto and Magnum brands.
