RFM expects 2018 profit to hit P1.1B
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Wed, 06 Feb 2019 16:15:54 +0000
RFM Corp. sees its net income in full-year 2018 hitting P1.1 billion, or a 6-percent increase from the P1.04 billion posted the year before.
In a disclosure on Wednesday, RFM President Jose Ma. Concepcion 3rd named the listed food manufacturer’s ice cream, pasta, sauces, milk, flour and mixes businesses as the primary drivers of last year’s growth.
“We are very positive on the continued growth of our topline and bottomline this 2019, especially as we head into election season and as we continue to see brisk economic activity and moderating inflation,” Concepcion said.
He added that he also expected consumer spending to improve.
In the statement, RFM declared P280 million in cash dividends — equivalent to P0.0805 per share — to stockholders as of Feb. 14, 2019 and payable on March 13.
The dividends, Concepcion said, were “the first of two tranches to pay out the 50-percent yearly cash dividend policy, based on recurring net income.”
“The company’s cash position is also expected to improve further as much of the major capital expenditures to expand capacity have been completed in 2018,” RFM said.
The firm also told the Philippine Stock Exchange that the Securities and Exchange Commission (SEC) had approved its planned merger with three of its subsidiaries.
Earlier this month, the commission allowed all the assets and liabilities of Cabuyao Logistics Industrial Corp., Interbake Commissary Corp. and Invest Asia Corp. to be transferred to and absorbed by RFM, the surviving entity after the merger.
The company expects the merger to “increase efficiency in overall operations and lesser administrative expenses.”
The SEC’s approval follows the one given by RFM’s board of directors during its regular meeting on July 25, 2018 and by the firm’s stockholders during a special meeting on September 7.
Incorporated in 1957 as Republic Flour Mills Inc., RFM has since diversified into poultry and livestock production and certain areas of food manufacturing. These include flour-based products, margarine, milk and juices, canned and processed meat, ice cream, and bottled mineral water.
Its brands include Selecta for ice cream, Fiesta and Royal for pasta, and White King mixes and Selecta Milk.
RFM shares remained at P4.80 on Wednesday.
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