RFM sets positive outlook for 2020

RFM Corp. looks to maintain the robust operations of its key businesses in 2020 after registering double- digit profit growth last year.

In a disclosure, RFM President and Chief Executive Officer Jose Ma. Concepcion 3rd said his firm was banking on the bullish economic outlook to drive its sales this year.

“For 2020, we plan to sustain the growth of our key brands and businesses in light of the strong economic momentum and consumer income growth,” he said.

According to its unaudited and preliminary financial report, RFM saw its 2019 net income grow by 10.3 percent to P1.22 billion from the previous year due to the strong sales of its products carrying the Selecta brand.

“Our Selecta Fortified Milk is our way of providing affordable and ready- to- drink ( RTD) milk to the Filipino family. Over time, we hope to contribute to a healthier populace through our RTD milk products,” Concepcion

said.

“At the same time, our affordable Selecta ice cream products continue to lead the category and provide livelihood to big and small retailers including the thousands of sari sari stores across the country,” he added.

The RFM chief also said its bread and flour businesses, along with Royal and Fiesta pasta brands, contributed to the company’s revenue boost last year.

The company also recently declared a cash dividend worth P366 million which is to be paid out on March 17. With strong cash flow and balance sheet, RFM said it was able to record a higher payout rate of 60 percent.

RFM has invested P1.7 billion in capital expenditures to expand or upgrade its production and warehouse.

RFM shares slid down by 4 centavos or 0.75 percent to finish at P5.29 each on Thursday.