FOOD manufacturer RFM Corp.'s preliminary unaudited net income last year rose by 14 percent to P1.2 billion from P1.07 billion in 2022, a senior company official said on Wednesday.
In a statement, RFM President and CEO Jose Ma. Concepcion 3rd said the growth was driven by improved margins as a result of a decline in the cost of raw materials like wheat and milk, "although inflation dampened consumer demand to an extent."
Preliminary unaudited revenue was said to have increased by 7.0 percent to P20.7 billion on the back of stronger sales in the milk, pasta, flour, ice cream and bread segments.
Concepcion said the company was continuing to invest in future growth as it planned to complete P1.5 billion worth of capital expenditure (capex) projects in the first quarter of this year.
"This capex, alongside the regular payment of dividends, were all funded by internally-generated cash, he said, adding that RFM's parent company "has no bank loans."
He said RFM was also targeting sustained topline and bottom-line growth this year amid increased competition in the ice cream sector and expected softer prices in raw materials compared to last year.
"Our Selecta Milk brand is also seeing sustained growth over the years, and we are supporting this with new capex and innovations, like what we are also doing with our new Fiesta carbonara sauce," he added.
"Our flour business is relatively strong and stable and continues to support the vertically integrated model of our bread and pasta businesses."
Concepcion expressed confidence that the company's balance sheet would allow RFM to take advantage of business opportunities "that can add value to the corporation."
RFM also announced it would be paying out cash dividends totaling P250 million on March 5 this year to all shareholders on record as of Feb. 7, 2024.
In the past two years, RFM had issued P850 million in cash dividends per year, with the 2023 payout reflecting an 8.4-percent dividend yield.
On Wednesday, the company's shares were unchanged at P2.90 apiece amid a 0.88-percent rise in the benchmark Philippine Stock Exchange index.
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