Cosmos set to declare P500-M cash dividend

Cosmos Bottling Corp., the beverage subsidiary of food giant RFM Corp., will declare a cash dividend of P500 million during its special board meeting next month, following its annual shareholders meeting.

In a disclosure to the Securities and Exchange Commission (SEC), the company gave notice that its annual shareholders meeting has been scheduled for April 11, 2000 at 10 a.m. at the RFM head office in Mandaluyong City.

Cosmos chairman and chief executive officer Jose A. Concepcion III said the hefty cash dividend will be recommended to the board as the company continued to post growth, despite the double-digit contraction in softdrink industry volumes last year as a result of weak consumer demand and the generally rainy weather.

Based on unaudited results, Cosmos expanded its net sales by 15 percent to P4.08 billion in 1999 from P3.54 billion the year before, on the back of a four-percent increase in total volumes for the year.

Net income after tax is expected to reach P510 million, a dip of six percent from the P540 million achieved in 1998, as a result of relatively higher sugar prices and greater support for brand-building activities in 1999.

Concepcion said increased marketing spending behind its flagship Pop Cola brand allowed the company to increase its market share despite aggressive moves by its major competitors. "On top of our value-for-money strategy, we have significantly improved the market's awareness and acceptance of the quality of our products," he said.

Cosmos will continue to build its brands in the year ahead even as it seeks to widen its distribution reach throughout the country, Concepcion said. Aside from Pop Cola, Cosmos makes and markets the Sarsi, Diet Sarsi, Sunkist Orange, Jaz Cola, and RC Cola brands of softdrinks. It also produces the Aqua Prima brand of mineral water.

With relatively lower sugar prices and less rains from the La Niña weather phenomenon, Concepcion expressed confidence that this year will prove to be an even better year for Cosmos.