Cosmos Post 28% Sales Growth, P560M Net Income in 1998

February 5, 1999 PSE CIRCULAR FOR BROKERS NO. 218-99 NEWS RELEASE RFM CORPORATION February 4, 1999 COSMOS POST 28% SALES GROWTH, P560M NET INCOME IN 1998 Cosmos Bottling Corporation, the softdrink subsidiary of food & beverage giant RFM Corporation reported a 28% jump in sales, posting P3.5 Billion in net sales in 1998, up from P2.75 billion in 1997. This sales resulted in net income after tax of PhP560 Mn, up from P508 Mn reported in 1997. cdlex Cosmos is the second largest softdrink bottler in the Philippines that carries the brands Pop, Jolt, Jaz and RC (cola), Sunkist (orange and lime), and Sarsi (rootbeer). "The sustained growth in net sales was basically due to the 27% increase in volume during the year plus a minimal price increase towards the end of the year", according to Cosmos Chairman and CEO Jose A. Concepcion III. "Our Products' value positioning, combining world class quality and competitive pricing have proven to be effective in building stronger demand for our products, even during the economic crisis", Concepcion said. "This rapid volume growth is a testimony that more and more people are drinking, our softdrinks products as Filipinos realize that they get better quality and tasting products at a price 25-30% lower than multinational brands", Concepcion said Concepcion also said that Cosmos has embarked on an advertising campaign for Pop Cola that should build further its image and awareness. A recent usage study showed that Pop leads Pepsi in terms of image and awareness. "This should, eventually lead other cola drinkers into trying our excellent Pop Cola products", Concepcion added. Concepcion believes that Cosmos, which is celebrating its 81st Anniversary this year, will continue to develop more loyal users of its good value brands, leading to sustained volume growth this year. Recently, Cosmos was included in Asiamoney magazine's best list in strategy and management, in access to management, in investor relations and as one of the Best Small Companies. Mr. Concepcion says, "this recognition proves that the Company have been successful in its goal to maximize returns to its shareholders and at the same time provide the Filipino consumers with high-quality yet affordable products". The company was earlier cited, as the only Filipino Company included in Forbes Global's 300 Best Small Companies. Likewise, Asian Wall Street Journal selected Cosmos as among the top listed Asian companies that did best in giving value to their shareholders. The magazine noted that CBC has a "solid returns on back of well-respected management teams and clear business focus. cdpr