RFM Corp., the food and beverage company of the Concepcion family, posted a net income of P580 million in the first six months of 2019, up 10.5 percent from P525 million year-on-year
RFM chief finance officer Enrique Oliver Rey-Matias said in an interview following the annual stockholders’ meeting first half revenues rose 10.3 percent to P7 billion from P6.3 billion a year ago.
Net income in the second quarter climbed 14.3 percent to P356 from P314 million a year ago, while second-quarter revenues rose 9.8 percent to P3.85 billion.
Rey-Matias said three branded food products, namely Selecta Milk, Selecta Ice Cream, Fiesta and Royal Pasta and Sauces, drove the double digit revenue growth for six-month period ending June.
“The Philippine economy’s growth trajectory has buoyed confidence of continued consumption expansion hence our heavy investment in new production capacities for RFM,” said RFM president and chief executive Jose Ma. A. Concepcion III in a statement.
Concepcion noted that the slowdown in inflation and the recent strength of the peso would dampen cost and that RFM’s strong balance sheet and cash position made the food company well-positioned to take advantage of growth opportunities in the food sector.
The company’s ice cream joint venture with Unilever Philippines Inc. in 2018 invested over P1 billion to expand capacity, while RFM’s flour division completed a P240-million mill upgrade.
The group this year is spending up to P400 million to expand the capacities of its spaghetti sauce and milk businesses.
Meanwhile, RFM disclosed the board approved a cash dividend of P271 million, or P0.0774 per share, for shareholders of record as of August 7, 2019. It set the payment date on September 4, 2019.
Concepcion said the cash dividend declaration was the second of two tranches out the company’s 50-percent recurring net income.
Total dividends declared by RFM this year now amounts to P553 million, or P0.1579 per share.
