RFM Corp., the listed food company of the Concepcion Group, on Wednesday said its preliminary net income in 2023 rose 14 percent to P1.2 billion as margins recovered due to improved cost of raw materials such as wheat and milk.
Unaudited sales figures for last year showed a 7 percent growth to P20.7 billion on the back of gains from milk, pasta, flour, ice cream and bread segments.
As a result, the RFM board declared cash dividend that total P250 million, or P0.07419 per share for stockholders on record 7 February. It will be paid on 5 March.
In 2023 and 2022, the company paid P850M in dividends.
RFM chief executive officer Jose Ma. Concepcion III said the reversal of raw material prices from higher levels in 2022 and early last year helped the company recover margins and cushion the impact of inflation on consumer demand.
“Nonetheless, RFM continues to invest in its future growth as it completes this first quarter 2024 important capex projects in breadline and milk totaling P1.5 billion. This capex, alongside the regular payment of dividends, were all funded by internally-generated cash and RFM parent company has no bank loans,” said Concepcion.
He said the outlook for 2024 suggests continued expansion in sales and “single-digit growth in income.” He said while competition in the ice cream market continues to tighten, margin improvements are seen in other businesses due to softer raw material prices.
Concepcion said the Selecta Milk brand is also seeing sustained growth the past years and support this with new capital expenditure and innovation similar to what is being done to its Fiesta carbonara brand of sauce.
“Our flour business is relatively strong and stable, and continues to support the vertically integrated model of our bread and pasta businesses,” said Concepcion, noting RFM’s strong balance sheet allows the company to take advantage of investment opportunities that may present themselves.
