RFM declares P417-M dividend as interim earnings surge

Food and beverage company RFM Corporation reported that its Board of Directors has approved a cash dividend of P417 million or P0.1237 per share payable on August 9, 2021 with record date as of July 14, 2021.

In a disclosure to the Philippine Stock Exchange, the firm said its total dividend for 2021 is now P0.229 per share or a dividend yield of 5 percent at the P4.55 per share price.

Total dividends declare this year now amounts to P772 million or 60 percent of the P1.28 billion net income of 2020.

“At 60 percent cash payout from net income, RFM aims to provide shareholders with steady cash dividends even as RFM navigates the transition of the economy to normalcy and maintains balance sheet strength,” RFM President and CEO Jose Ma. A. Concepcion III said.

RFM President and CEO Jose Ma. A. Concepcion III (Photo credit: https://www.rfmfoods.com)

During the RFM Annual Shareholders’ Meeting, Concepcion said “RFM performed strongly in 2020 with positive growth in sales and income.”

“However, for 2021, even as the economy regains traction with mass vaccination, RFM continues to face headwinds in input and operation costs which the company is tackling by improving operational efficiencies in production, distribution and other controllable costs,” he noted.

Concepcion added that, for the period January to May 2021, preliminary numbers indicate that revenues of RFM reached P5.93 billion or 3 percent higher while net income surged to P602 million or 12 percent higher than previous year.

“We have seen a good rebound in our ice cream and institutional sales this 2021, after the severe lockdowns in 2020,” he explained.

Concepcion added that, “The strong gains milk, pasta, sauce and hotcake mixes during the quarantine have somewhat normalized but the upcoming election spending and economic recovery will provide a second wind for the second half of 2021.”

“RFM is planning to vaccinate its workers and third party manpower contractors to ensure that RFM offices and plant sites are safe from covid-19,” he said.