LISTED food and beverage manufacturer RFM Corp. will not implement price increases for its items sold across supermarkets during the holiday season, its top official said.
“We are ready for the holiday season and have no plans to raise prices, particularly for popular items like ice cream and pasta. Our prices are protected thanks to hedging. Our goal is to encourage increased spending from consumers this Christmas,” stated Jose Ma. A. Concepcion III, President and CEO of RFM, in an interview with ANC’s Market Edge on Tuesday.
“We have begun stocking the supermarkets. Our goal is to maintain this momentum and completely sell out of our inventory in the upcoming quarter. I am confident that this trend will continue into next year,” he stated.
According to Mr. Concepcion, RFM is anticipating a positive holiday season due to higher consumer spending and decreased costs of raw materials.
Mr. Concepcion stated that our prices have been modified and we have begun selling and distributing products in advance for Christmas. It is certain that there will be no price hikes. Currently, the market is highly competitive, even in the ice cream industry. We face many rivals who are vying for our portion of the market.
Our goal is to encourage consumers to make purchases. By making the products more budget-friendly, they will be able to purchase more items. It is widely believed that this holiday season will be successful. This is largely due to the fact that Filipinos have a strong tradition of celebrating with food.
In the meantime, Mr. Concepcion stated that the company’s profits are secure as they have guaranteed the availability of necessary materials until June of next year.
“Due to the significant increase in commodity prices earlier this year and their current levels, our profit margins are secure. To ensure this, we have hedged our raw material costs up until June of next year, locking in current prices. This precaution allows us to mitigate any potential future price increases,” stated Mr. Concepcion.
He reassured, “We’ll be alright.”
In the first six months of the year, RFM’s net income decreased by 19% to P558 million, despite a net revenue increase of 8% to P9.2 billion. RFM offers a variety of products, such as ice cream, flour-based goods, milk, and juices.
On Tuesday, RFM shares on the local stock exchange ended the day at P3.05 each without any change. – Revin Mikhael D. Ochave