RFM Corp. is folding three subsidiaries into its portfolio in a bid to achieve efficiency in operations.
In a disclosure to the stock exchange on Wednesday, the listed ice cream and pasta manufacturer said its board of directors has approved the company’s merger with Cabuyao Logistics Industrial Corp., Interbake Commissary Corp., and Invest Asia Corp., with RFM as the surviving entity.
The company said the integration of the four firms’ administrative facilities will result in economies of scale and efficiency of operations, while the consolidation of their assets will also make the procurement of financing and credit facilities more favorable.
It added that the merger will allow for more productive use of the respective corporations’ properties.
RFM will be calling for a special stockholders’ meeting on Sept. 7 to secure approval from its shareholders.
The company’s attributable profit reached P314 million in the second quarter of 2018, 1.2% higher than what it generated in the same period a year ago. Revenues meanwhile climbed 13% to P3.5 billion for the period. This brought the RFM’s first-half attributable profit 3% higher to P525 million, driven by an 11.6% increase in revenues to P6.31 billion.
The company expects to book a double-digit growth in revenues and high single-digit increase in net income for the entire year.
Incorporated in 1957 originally as Republic Flour Mills, Inc., RFM’s business is divided into two segments: the institutional segment for the flour, bakery, and other bakery products to institutional customers, and the consumer segment that manufactures and sells ice cream, milk, juices, pasta, and other rice-based mixes. Its brands include Selecta for ice cream, Fiesta and Royal for pasta, and White King mixes and Selecta Milk.
Shares in RFM picked up 0.85% or four centavos to close at P4.74 each at the stock exchange on Wednesday. — Arra B. Francia
