October 23, 2024 | 12:00am
MANILA, Philippines — Robust sales of pasta and ice cream boosted the earnings of food and beverage company RFM Corp. in the nine-month period ending September.
RFM said that its net income from January to September grew by 14 percent year-on-year to P1.1 billion based on the preliminary unaudited financial statement of the company.
Sales for the three quarters reached P15 billion, up by three percent.
According to RFM, strong sales of Royal and Fiesta Pasta as well as of Selecta Ice Cream have pushed volumes up even as better margins drove income higher.
The company’s good performance was also attributed to launches of new innovative products in key categories like milk, pasta and ice cream, spurring growth organically.
Given the company’s strong financial performance, RFM CEO Jose Ma. Concepcion III said that its board approved a cash dividend of P500 million or P0.148388 per share payable on Dec. 2, with record date as of Nov. 6.
Concepcion said that RFM’s strong balance sheet and good income growth arising from better margins and higher volumes from key business units have allowed for more cash dividends amid completion of big-ticket capital expenditure items in mid-2024.
So far this year, RFM has declared dividends amounting to P1.3. billion or P0.385809 per share, higher than the P850 million in 2023.
At the share price of P3.75 last Oct. 18, RFM’s dividend yield is 10.3 percent.
Concepcion said that major capital expenditure have been completed and cash in the balance sheet is adequate to fund the latest and biggest cash dividend declaration of the company in recent years.
For next year, Concepcion expressed concern over tensions in the Middle East.
He said that the recent escalation of the war in the Middle East, if not contained soon, could push inflation via higher oil prices and eventually affect consumer demand.
However, he said the midterm election spending could provide some consumption support for 2025.
Concepcion added that economic expansion and increased employment are strong anchors of consumer spending and so far, these economic indicators point to continued resilience and thus provide good support for spending.
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