By James A. Loyola
Food and beverage company RFM Corporation posted a 10.5 percent improvement in net income to P580 million in the first half of 2019 from P525 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, RFM President and CEO Jose Ma. A. Concepcion III said first half sales also rose 10.3 percent to P6.96 billion from P6.31 billion.
First half revenues of the firm’s ice cream business grew 9 percent year on year while institutional sales including the bakery business expanded with an 12.9 percent increase.
The Company’s revenue from other products – Fiesta pasta and milk – also posted a strong 10 percent expansion for the six-month period.
Concepcion also disclosed that with such strong growth momentum in the ready-to-drink white milk and spaghetti sauce segments, RFM is investing this year in additional milk and sauce capacities costing over P400 million.
In 2018, the company’s ice cream joint venture with Unilever also invested over P1 billion to expand capacity while RFM’s flour division completed a P240-million mills upgrade.
“The Philippine economy’s growth trajectory has buoyed confidence of continued consumption expansion hence our heavy investment in new production capacities for RFM,” said Concepcion.
He also noted that the slowdown in inflation and recent strength of the peso will dampen cost inflation and that RFM’s strong balance sheet and cash position make the food company well positioned to take advantage of growth opportunities in the food sector.
Meanwhile, RFM’s Board of Directors approved a cash dividend of P271 million or P0.0774 per share, for shareholders as of record date of August 7, 2019 and the payment date for which is set on September 4, 2019.
Concepcion said that this cash dividend declaration is the second of two tranches to pay out the company’s 50 percent recurring net income. Total dividends declared by RFM this year now amounts to P553 million or P0.1579 per share.