RFM Q3 profit grows 20%
Food and beverage company RFM Corporation posted a 20 percent growth in net income to R211 million for the third quarter of 2017 compared to the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said profit growth came on the back of its R3.16-billion revenues, up 7 percent over the revenues posted for the same period last year.
RFM President and CEO Jose A. Concepcion III said that ice cream sales drove the strong third quarter performance of RFM as the country saw relatively less-than-usual wet weather in the third quarter that helped propel ice cream sales.
Revenues from RFM’s pasta brands, as well as from milk and juices, were flat but with expectations of growth pick up in the fourth quarter as the Christmas selling season begins.
There was sustained increase in the revenues of the Company’s private label bread unit that also helped offset the weaker performance of other institutional revenue sources like flour.
“Overall, the strong 20 percent net income growth of RFM in the third quarter puts RFM on track to beating its reported 2016 net income of R1 billion,” the company said.
Concepcion also cited the recently declared cash dividend of R200 million or R0.057 per share, for shareholders as of record date of October 11, 2017.
He said that this second cash dividend declaration in 2017 completes the company’s 50 percent cash dividend on recurring net income.
Early this year, RFM declared and paid R300 million in cash dividends. “Total cash dividends for 2017 now amounts to R500 million or R0.14 per share,” he added. Concepcion said that “on top of the 50 percent dividend payout and current share buyback program, RFM continues to ensure long term growth momentum with the planned R1-billion capex program for the ice cream joint venture that would ensure adequate production capacity over the long term.”
He said “there is also a R250-million capex for RFM’s flour unit over two years to upgrade the flour mills and ensure competitiveness of the flour brands.”