RFM expects higher P1.1 B profit in 2018

RFM Corp., the Concepcion-owned food and beverage firm expects to hit P1.1 billion in profit in 2018, according to preliminary and unaudited financial data.

It is also on track to post P14.3 billion in sales, 12 percent higher than the previous year.

The company’s growth drivers are its flagship ice cream, pasta and sauce brands as well as milk, flour and mixes business units, said Jose Ma. A. Concepcion III, president and CEO of RFM.

“We are very positive on the continued growth of our topline and bottomline this 2019, especially as we head into election season and as we continue to see brisk economic activity and moderating inflation,” he said

Concepcion, who is also the presidential adviser for entrepreneurship, sees the Philippines posting a robust growth with interest rates softening and the peso improving.

He said the collective efforts of both the public and private sectors toward a more inclusive economy would translate to better spending power for consumers.

RFM’s board of directors, meanwhile, approved a cash dividend of P280 million or P0.0805 per share, for shareholders as of record of Feb. 14. The payment date is set on March 13.

Concepcion said the cash dividend declaration is the first of two tranches to pay out the company’s 50 percent yearly cash dividend policy based on recurring net income.

The company’s cash position is also expected to improve further as much of the major capital expenditures to expand capacity had been completed in 2018.

The Securities and Exchange Commission has approved the merger of RFM with three of its subsidiaries - Cabuyao Logistics Industrial Corp., Interbake Commissary Corp. and Invest Asia Corp. to increase efficiency in overall operations and lesser administrative expenses.

Prior to the approval of the merger, RFM’s ownership in these three subsidiaries already ranged between 96 percent and 100 percent.