EARNINGS of RFM Corp. in 2019 grew 10% to P1.22 billion, buoyed by a 9% increase in revenues to P15 billion.
In a statement Wednesday, the Concepcion-led food company said its milk and ice cream products led the outperformance of its sales last year to push its profits higher than in 2018.
“Our Selecta Fortified Milk is our way of providing affordable and ready-to-drink milk to the Filipino family… At the same time, our affordable Selecta ice cream products continue to lead the category and provide livelihood to big and small retailers including the thousands of sari sari stores across the country,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III was quoted as saying in the statement.
“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,” he added.
RFM also said its board of directors had approved yesterday a cash dividend of P0.106 per share for its shareholders, which amounts to P366 million in total, based on the company’s unaudited and preliminary data for 2019 financial results.
“For the income of 2019, RFM is looking at a higher payout rate of 60% 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,” Mr. Concepcion said.
“Even if we pay out 60% of 2019 income, the company still has ample liquidity notwithstanding that RFM has invested P1.7B in capex (capital expenditure) in the previous years to expand or upgrade its ice cream, milk, pasta and flour production as well as warehousing capabilities,” he added.
RFM is in the business of selling dairy, pasta, wheat, flour, juices, margarine and other food and beverage products. It also owns the White King, Sunkist Orange Pulp and Vitwater brands.
The company’s shares at the stock exchange closed flat on Wednesday at P5.33 each. — Denise A. Valdez
