RFM posts ₱1.22-B net profit in 2019

Published February 6, 2020, 12:00 AM

by manilabulletin_admin


RFM Corporation reported a 10 percent growth in unaudited net income to ₱1.22 billion last year as revenues hiked 9 percent to ₱15 billion in 2019.

Joey Concepcion
RFM President and Chief Executive Jose Ma. A. Concepcion III.

In a disclosure to the Philippine Stock Exchange, the firm also reported that its Board of Directors has approved a cash dividend of ₱366 million or ₱0.106 per share, for shareholders as of record date of February 19, 2020 and the payment date for which is set on March 17, 2020.

“RFM usually dividends out 50 percent of its net income in two tranches in the first and third quarter,” noted RFM President and Chief Executive Jose Ma. A. Concepcion III.

He added that, “For the income of 2019, RFM is looking at a higher payout rate of 60 percent due to the accumulation of cash and strength of the RFM balance sheet arising from the continuing growth of Selecta Ice Cream, Selecta Milk, RFM Flour as well as Royal and Fiesta Pasta and Sauces.”

Concepcion noted that, “Even if we pay out 60 percent of 2019 income, the company still has ample liquidity notwithstanding that RFM has invested ₱1.7 billion in capex in the previous years to expand or upgrade its ice cream, milk, pasta and flour production as well as warehousing capabilities.”

He said their milk product has been leading the expansion in sales along with ice cream. RFM’s institutional bread and flour businesses also saw banner years along with its pasta brands.

“For 2020, we plan to sustain the growth of our key brands and businesses in light of the strong economic momentum and consumer income growth,” Concepcion said.

In the fourth quarter of 2019, RFM announced an additional capital expenditure of P220 million to expand institutional and consumer brand production capacities.

This was on top of the previously reported P400 million capex approved a couple of months ago to expand the sauce and milk businesses.

“RFM is quite bullish in its brands and businesses. We will continue to deploy the required funding to meet the growth in demand for our brands. To this end, we have a very strong cash position to back our capex,” said Concepcion.