In a show of confidence in RFM Corporation, which has seen its profits rise this year, the food and beverage firm's chief executive, Jose Ma. A. Concepcion III, has been steadily increasing his shareholdings in the company.
Based on five disclosures to the Philippine Stock Exchange since Nov. 27, 2024, Concepcion has personally acquired 18.07 million RFM common shares worth P68.26 million, equivalent to 0.52 percent of the company's outstanding stock.
With his recent purchases from the open market, Concepcion now owns 801.94 million RFM shares, equivalent to 22.9 percent of the company, through Triple Eight Holdings Inc.
On Nov. 27, 2024, through Triple Eight, he acquired 10 million RFM shares at P3.80 per share (amounting to P38 million) and 4.07 million shares at P3.70 each (P15.06 million).
On Dec. 17, Concepcion's Triple Eight bought two million shares at P3.80 per share (P7.6 million), then one million shares each on Dec. 18 and Dec. 19, also at P3.80 per share (totaling P7.6 million).
Looking ahead to 2025, Concepcion admitted that the recent escalation of the war in the Middle East, if not contained soon, could increase inflation through higher oil prices and eventually affect consumer demand.
However, he believes that midterm election spending could provide some support for consumption.
He added that economic expansion and increased employment are strong anchors of consumer spending, and so far, these economic indicators point to continued resilience and provide good support for spending.
With consumer spending remaining resilient, RFM has been posting strong profit growth this year due to better margins. Revenues for the first nine months of the year improved three percent from a year ago to reach P15 billion.
Meanwhile, the firm's net income rose 14 percent to P1.1 billion as of September 2024, nearly matching the full-year net income of P1.1 billion last year.
Because of its strong income growth and healthy cash position, RFM declared a special P500 million cash dividend, for a total of P1.3 billion in 2024.
Concepcion said the cash dividend of P0.148388 per share was paid on December 2, 2024, and noted that RFM's strong balance sheet and good income growth, arising from better margins and higher volumes from key business units, allowed for increased cash dividends.
The completion of major capital expenditure projects in mid-2024 also boosted the firm's cash position, allowing for the declaration of more dividends – the latest of which is the biggest in recent years.
Strong sales of Royal and Fiesta Pasta, as well as Selecta Ice Cream through the Unilever-RFM joint venture company, have driven volumes higher, while better margins have boosted income.
Concepcion also attributed RFM's good performance to the launch of new, innovative products in key categories like milk, pasta, and ice cream every year to spur organic growth.