RFM Corp., the food and beverage company of the Concepcion family, said Wednesday its net income rose 14 percent in 2023 to P1.2 billion from P1.07 billion in 2022 on the back of higher margins.
The company said in a disclosure to the stock exchange that based on preliminary unaudited figures, full-year 2023 revenues also went up by 7 percent to P20.7 billion.
RFM president and chief executive Jose Ma. Concepcion III said higher sales growth in milk, pasta, flour, ice cream and bread segments boosted the 2023 performance of the company.
He said the significant jump in raw material prices in 2022 and early 2023 reversed through the year and helped the company’s margins to recover even as inflation dampened consumer demand.
Concepcion said the group was expected to sustain its growth momentum in 2024 amid continued easing of raw material prices.
“RFM’s outlook for 2024 is continued growth in topline and single-digit growth in income. There is greater competition in the ice cream sector, but improvement in margins is seen on most business segments with the softer prices of raw materials coming in 2024 compared to early 2023,” Concepcion said.
“Our Selecta Milk brand is also seeing sustained growth over the years and we are supporting this with new capex and innovations, like what we are also doing with our new Fiesta carbonara sauce. Our flour business is relatively strong and stable, and continues to support the vertically integrated model of our bread and pasta businesses,” he said.
Concepcion said RFM’s strong balance sheet provides a ready war chest for any business opportunity that can add value to the corporation.
Meanwhile, the board of RFM approved a cash dividend of P250 million equivalent to P0.07419 per share to shareholders as of record date Feb. 7, 2024. Payment date was set on March 5, 2024.
The share price of RFM was unchanged at P2.90 on Wednesday.