RFM Corp. of the Concepcion Group said Wednesday it is on track to register a net income of P1.1 billion in 2018, slightly higher than the profit of P1.04 billion in 2017.
RFM in a disclosure to the stock exchange the 2018 revenue, based on the preliminary and unaudited financial figures, was also poised to reach P14.3 billion, up 12 percent from the previous year, on strong sales from ice cream, pasta and sauce as well as milk, flour and mixes business units.
“We are very positive on the continued growth of our top line and bottom line this 2019, especially as we head into election season and as we continue to see brisk economic activity and moderating inflation,” said RFM president and chief executive Jose Ma. A. Concepcion III.
Concepcion predicts a robust growth in the Philippines with interest rates softening and a more stable peso, with the possibility of further strengthening.
He also expects stronger spending power from consumers.
Several brokerage firms have expressed bullishness on consumer-related stocks in 2019 because of the reduction in cost of raw materials as well continued strong consumer spending.
RFM last month disclosed the Securities and Exchange Commission approved the merger of three of its subsidiaries into the parent company.
The merger into RFM of the CLIC (Laguna plant site), ICC (bunline plant) and IAC (head office building) is expected to increase efficiency in overall operations and lessen administrative expenses.
Prior to the approval of the merger, RFM’s ownership in the three subsidiaries already ranged between 96 percent and 100 percent.
Meanwhile, the board of RFM approved a cash dividend of P280 million, or P0.0805 per share, for shareholders of record as of February 14, 2019 and the payment date on March 13, 2019.
Concepcion said the cash dividend declaration was the first of two tranches to pay out the company’s 50-percent yearly cash dividend policy based on recurring net income.
The company’s cash position is expected to improve further as much of the major capital expenditures to expand capacity has been completed in 2018.