Selecta Diary Products Inc: The Total Dairy Company

April 14, 1998 PSE CIRCULAR FOR BROKERS NO. 667-98 SELECTA DAIRY PRODUCTS INC: THE TOTAL DAIRY COMPANY Selecta Dairy Products Inc. (SDPI); the dairy subsidiary of food and beverage giant RFM Corporation, posted a record net income of P187.7 million in 1997, surpassing the previous year's net income of P100 million by 88%. The growth figures Selecta registered for the year of 1997 have been the biggest ever in its corporate history. SDPI President and Chief Operating Officer John Concepcion stresses the need to continue this trend of growth seen by the company in the past year. Concepcion anticipates that, as it enters into new dairy categories, Selecta will become a major force not just in the country's ice cream manufacturing industry, but in the bigger dairy products segment at well. LibLex In line with its thrust to sustain leadership in the ice cream market, and its growing share in the milk and juice category, Selecta has made a decision to concentrate on the improvement of their manufacturing competencies and logistics management. The company also intends to continue its efforts in reducing wastages, which was instrumental in improving its profit margins by 23% in 1997. SDPI is set to make aggressive moves to assert the global competitiveness of its products, and is currently exploring opportunities for expansion in the Asia-Pacific region. Selecta continues to express optimism despite the Asian currency crisis. Projected total sales target for 1998 is approximately P3.0 billion or a 55% growth from its 1997 sales figures. Although 1997 was a very productive year for the company, Selecta seeks to eclipse the achieved results in 1998. Aside from Selecta ice cream, the company continues to provide Filipino consumers with great tasting, high-quality dairy products in the mild and juice categories such as Selecta Moo, Sunkist ready-to-drink tetra juices and Hershey's milk and chocolate drinks. In June 1997, Selecta entered into a distributorship agreement with Hershey International for the exclusive distribution of Hershey's Confectionery, the market leader in the imported chocolates category. Selecta Dairy Products Inc. expects their full-year sell-in of Hershey's Confectionery to achieve even bigger distribution results in 1998. Selecta was established in 1990, shortly after RFM Corporation first acquired the homegrown "Selecta" ice cream brand. What started initially as an ice cream company has evolved into a total dairy company, boasting of an array of quality and reasonably priced products.