RFM Corp. reported last Thursday a net income of P1.06 billion last year, slightly down from the previous year’s P1.3 billion.
“Preliminary unaudited net income for 2022 hit P1.06 billion from P1.3 billion in 2021 as margins compressed as a result of higher input costs, such as wheat, milk and sugar which RFM absorbed partly, as well as the bigger charge of electricity by RFM’s power supplier,” the publicly-listed food and beverage firm’s statement read.
Last year’s sales grew by 15 percent to P19 billion on the back of both volume and price increases in RFM’s ice cream, milk and institutional segments.
Also, the company declared a cash dividend of P350 million or P0.103871 per share payable on February 14, 2023, with record date as of January 19, 2023.
The P350-million cash dividend is 33 percent of last years’ unaudited net income. At the end 2022 share price of P3.60 per share, the yield of the dividend is three percent.
RFM CEO Jose Ma. A. Concepcion III was quoted in the statement as saying the company “made a conscious effort not to fully pass on the higher costs of commodities and power to the consumers as it wanted to avoid demand contraction that could be inimical to sales in the long run.”
“Meantime, we continue to declare our usual dividends as we have a very strong balance sheet with no parent company bank loans even with the recently-approved and internal cash-funded big ticket capex [capital expenditure] projects,” added Concepcion.
He said that for this year, the company is hoping for a continued growth in topline and single digit growth in income.
“RFM’s ‘Royal’ and ‘Fiesta’ pasta brands shall continue to strengthen their leadership in the pasta and sauce market while our Selecta Milk hopes to sustain the double digit growth over the years with more innovations,” Concepcion said. “Our ice cream joint venture with Unilever is a big anchor for our topline and bottom line over the years and shall continue to be so in the future.”