By James A. Loyola
Food and beverage firm RFM Corporation reported that preliminary and unaudited financials indicate that it is on track to post a net income of P1.1 billion for 2018, topping its 2017 income of P1.04 billion.
In a disclosure to the Philippine Stock Exchange, the firm said it estimates P14.3 billion in sales for 2018 equivalent to a 12 percent growth versus 2017.
RFM President and CEO Jose Ma. A. Concepcion III noted that revenue growth drivers continue to be the ice cream, pasta and sauce as well as milk, flour and mixes business units.
“We are very positive on the continued growth of our topline and bottomline this 2019, especially as we head into election season and as we continue to see brisk economic activity and moderating inflation,” he added.
Concepcion, who is also the Presidential Adviser for Entrepreneurship, sees a very robust growth in the Philippines with interest rates softening and a more stable peso with the possibility of further strengthening.
Given the collective efforts of both the public and private sectors towards a more inclusive economy, Concepcion also expects better spending power from consumers.
He also said that the RFM Board of Directors approved a cash dividend of P280 million or P0.0805 per share, for shareholders as of record date of February 14, 2019 and the payment date for which is set on March 13, 2019.
Concepcion said this cash dividend declaration is the first of two tranches to pay out the company’s 50 percent yearly cash dividend policy based on recurring net income.
The company’s cash position is also expected to improve further as much of the major capital expenditures to expand capacity have been completed in 2018.