Concepcion-led food and beverage firm RFM Corporation has declared cash dividends amounting to P200 million, as it expects to sustain last year's net income growth to about P1.4 billion to P1.5 billion.
In a disclosure to the Philippine Stock Exchange (PSE), the company reported that its Board of Directors had approved a cash dividend of P0.05936 per share, payable on Feb. 18, 2025, with a record date of Jan. 22, 2025.
RFM said the declared cash dividend will come from its unrestricted retained earnings as of Dec. 31, 2024, and is one of the tranches to pay out the company's yearly cash dividend policy based on recurring net income.
In 2023, RFM made P1.27 billion in net income from P20.7 billion in revenues.
RFM Chief Executive Officer Jose Ma. A. Concepcion III, who has also been buying shares in the market in 2024, said that RFM sees a better 2024 full-year performance from its branded consumer and institutional businesses in terms of both sales and income.
Noting preliminary and unaudited figures, RFM said 2024 total revenues are on track to hit P22 billion, up 6.4 percent from the P20.68 billion generated in 2023.
It added that net income is trending to grow by double digits to the P1.4 billion to P1.5 billion range, up to 18 percent higher than the P1.27 billion earned in 2023.
For the new year 2025, Concepcion expects to sustain the strong performance of RFM’s brands and businesses, with input price inflation within reasonable levels so far.
He also noted the strong underlying consumer demand for RFM’s Fiesta and Royal pasta products that buoyed 2024 sales, on top of the purchases of local government units for their Christmas baskets for constituents.
RFM declared a total of P1.3 billion in cash dividends in 2024, up from P850 million in 2023. At the share price of P3.87 at the end of 2024, RFM’s 2024 dividend yield is 10 percent.
“RFM has no debt and has a strong balance sheet that enable our steady declaration of cash dividends. We have also completed some big capex in 2024 like the new Silang, Cavite bakery plant and new Selecta Milk lines and will just be on the lookout for opportunities to grow our businesses,” Concepcion said.
"Nevertheless, our pipeline of new products is quite packed for our ice cream, pasta and milk brands, which will ensure organic growth for RFM in the near term,” he added..
In a show of confidence in RFM, Concepcion has been slowly adding to his shareholdings in the company.
Based on six disclosures to the PSE from Nov. 27 to Dec. 23, 2024, Concepcion has personally accumulated 21.07 million RFM common shares worth P79.66 million, equivalent to 0.60 percent of the company’s outstanding stock.
With his recent purchases from the open market, Concepcion now owns 804.94 million RFM shares, equivalent to 23 percent of the company, through Triple Eight Holdings Inc.