RFM Corp. grew its profit in the first six months of the year by 17 percent to P650 million from P555.55 million previously.
Sales rose by 4 percent to P9.55 billion from P9.18 billion.
The company said the growth was achieved on the back of “continuing tailwinds of lower input costs and operating leverage.”
“Sales of pasta, pasta sauce, and ice cream products experienced good growth, while sales of flour declined in peso terms due to lower market prices of flour following the decreased price of wheat,” it said.
Jose Ma. Concepcion III, RFM chief executive officer, said the company continues to keep adequate liquidity in the balance sheet even as it supports healthy levels of dividends every year.
“The company’s P1.1-billion bakery plant in Silang, Cavite is now operational; it was funded by internally generated cash and is RFM’s second bakery plant,” Concepcion said.
“RFM is also launching new products this year like the Selecta Flavored Milk and other milk innovations to maintain the growth momentum in RFM’s milk segment. Our pasta business is also rolling out more innovations and we see that our Unilever RFM Ice Cream joint venture is able to sustain growth in 2024 with timely price adjustments to ensure affordability and healthy demand,” Concepcion added.
RFM is declaring a P300- million cash dividend for shareholders as of August 16.
The dividend translates to P0.089033 per share payable on September 13.
The Concepcion-controlled food group said this brings the company’s dividend payout for the year to P800 million, or P0.237421 per share.
“At the share price of P3.80 as of July 31, RFM’s dividend yield is 6.25,” it said.
“2024 looks to be a good year in terms of income growth as we are able to enjoy softer costs of raw materials,” added Concepcion.
RFM declared P850 million as cash dividends last year.
