By James A. Loyola
Food and beverage company RFM Corporation reported an 11 percent improvement in net income to P1 billion last year on the back of P12.7 billion in sales revenues, up 6 percent over 2015.
In a statement, RFM President Jose A. Concepcion III said that sales of the company’s consumer branded businesses including pasta and ice cream saw an 11 percent growth.
The growth in pasta was mainly driven by strong sales of Fiesta brand even as the Royal brand continued to expand its product offerings in 2016 with the launch of the Royal pasta and sauce bundle as well as the Royal spaghetti sauce.
Concepcion added that Selecta ice cream sustained double-digit growth rates supported by intensive selling, marketing and distribution as well as continuing product innovations.
The 11 percent revenue growth of branded businesses was tempered by the 6 percent drop in institutional sales as flour prices remained soft.
“The continued growth in income allows RFM to generate sufficient cashflows to pursue a 50 percent of income cash dividend policy. At the RFM parent company level, we are debt-free. We have likewise embarked on a share buyback program,” Concepcion added.
Early this year, RFM declared P300 million in cash dividends to shareholders and is looking to declare the next tranche of dividends in the second half of 2017.