RFM income grows 10% to P1.22 billion

Manila, Philippines — Listed food and beverage company RFM Corp.  reported a net income of P1.22 billion last year, up 10 percent year- on-year.

Revenue grew to over P15 billion or about nine percent higher than 2018, the company said.

RFM president and chief executive officer Jose Ma. A. Concepcion III said they are looking at declaring higher dividends to shareholders.

“RFM usually dividends out 50 percent of its net income in two tranches in the first and third quarter. For the income of 2019, RFM is looking at a higher payout rate of 60 percent 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,” he said.

“Even if we pay out 60 percent of 2019 income, the company still has ample liquidity,” Concepcion said.

RFM has invested P1.7 billion in capex in the previous years to expand or upgrade its ice cream, milk, pasta and flour production as well as warehousing capabilities.

The company’s flagship Selecta Fortified Milk has been leading the expansion in sales along with Selecta Ice Cream.

“Our Selecta Fortified Milk is our way of providing affordable and ready-to-drink milk to the Filipino family. Over time, we hope to contribute to a healthier populace thru our RTD milk products. 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.” he said.

RFM’s institutional bread and flour businesses also saw banner years along with the Royal and Fiesta pasta brands.

“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,” Concepcion said.