RFM buys back P350 million shares

MANILA, Philippines — Food and beverage manufacturer RFM Corp. bought back P350 million worth of shares, using excess cash.

The company repurchased 79.4 million shares at  P4.38 per share.

RFM president and CEO Jose Ma. Concepcion III said the company was able to buy back its shares because of its  excess liquidity and robust topline expectations.

The company  recently approved  a cash dividend of P366 million or P0.1060 per share,  payable on Sept. 10.  Shareholders as of record of Aug. 13 are eligible to receive the dividends.

“RFM’s consumer and institutional businesses have been fortunate to perform well despite the pandemic. We wish to provide better usage of our excess cash by increasing buybacks. RFM’s cash dividend yield is in excess of four percent and we hope to sustain this. We have been controlling expenses and capex to also ensure we remain lean and efficient,” Concepcion said.

RFM  reported a preliminary net income of P611 million in the first half, up five percent year on year.    Sales increased by two percent to P7 billion.

While the first quarter income slowed by four percent and revenue growth was only at three percent, second quarter performance reflected sustained sales growth in milk, pasta and sauces with improving topline for ice cream and institutional sales.

This is due to consumers’ eating behavior during the lockdown, which has shifted food demand toward more nutritious food cooked at home.

RFM’s pasta, milk, sauce and White King sales  showed 18 percent growth.  Sales of ice cream likewise improved.

Concepcion expects RFM’s  topline to improve  in the coming months.

RFM has tightened on expenses and capex spending to conserve liquidity and maintain profitability in light of changing consumption patterns.