FOOD and beverage manufacturer RFM Corp. on Friday said that it earned P650 million in net income for the first six months of the year, an increase of 16.7 percent from P558 million a year earlier.

"2024 looks to be a good year in terms of income growth as we are able to enjoy softer costs of raw materials," RFM Chief Executive Officer Jose Ma. Concepcion III noted in the company's quarterly report.

Sales went up by 4 percent from P9.2 billion to P9.5 billion due to continued lower input costs and operating leverage.

The brand's pasta sauce and ice cream products sold well, which was not the case for flour given lower market prices of wheat.

"RFM continues to keep adequate liquidity in the balance sheet, even as it supports healthy levels of dividends every year," Concepcion said, adding that RFM will release new products within the year, including Selecta Flavored Milk.

"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," he added.

RFM likewise announced that its P1.1-billion internally funded bakery plant in Silang, Cavite was now operational. It is RFM's second bakery plant.

For the second quarter, RFM's net revenue grew by 6 percent to P5.2 billion from P4.9 billion for the same period last year. Net income was P448 million, or a 6.4-percent increase from P421 million in 2023.

Earnings before interest, taxes, depreciation, and amortization slightly fell in the second quarter by 1 percent, from P638 million to P631 million. But it increased for the first half of the year by 30 percent at P1.3 billion from P1 billion last year.

RFM's board of directors approved a cash dividend of P300 million, or P0.089 per share, to be paid on Sept. 13.

RFM shares were up by 9 centavos at P3.90 apiece on Friday.