RFM benefits from El Nino

RFM benefits from El Nino

MANILA (AFP): Philippine food giant, RFM Corp. expects to enjoy a 25-percent hike in net profits next year despite the continuing economic slowdown and will even benefit from one of its contributing factors, the El Nino phenomenon.

RFM said in a statement that its net profits in 1998 are targeted to hit one billion pesos (US$28.5 million) while its net profits in 1997 are estimated to go as high as 800 million pesos, up from 503 million

The government has been forced to scale down economic projections for 1997 and 1998 due to the Asian financial crisis that broke out in July and the El Nino atmospheric phenomenon which has caused a prolonged dry spell expected to last till May.

"We are confident that 1998 will be a good year for food and beverage," the company statement said, noting that this sector had shown itself more resilient during past crises periods.

The extended dry spell brought about by El Nino is also expected to boost consumption of its softdrinks, ice creams and juices, the company added.