RFM Corporation Announced Php 250M in Cash Dividends; Estimated Revenues in 2023 Expanded 7% to Php 20.7B; Unaudited Income Reaches Php 1.2B

CEO of RFM Corporation, Jose Ma. A. Concepcion III said that the milk, pasta, wheat, ice cream, and bread categories contributed to the preliminary unaudited 2023 sales gain of 7% to Php20.7B. Preliminary unaudited net income for 2023 increased by 14% to Php1.2 billion from Php1.07 billion in 2022 as margins improved due to lower raw material costs for items like milk and wheat.

A cash dividend of Php 250 million, or Php 0.07419 per share, is approved by the Board of Directors of the food and beverage company that is listed on the Philippine Stock Exchange (PSE: RFM). The dividend is payable on March 5, 2024, with a record date of February 7, 2024. One of the dividend announcements the company makes each year is the Php250 million cash dividend. The company distributed Php850 million in dividends annually in 2022 and 2023. The yield of the entire Php850 million dividend for 2023 is 8.4% at the share price of Php3.00 on December 29, 2023.

Joey Concepcion also noted that “the hefty raw material price increases seen in 2022 and early 2023 reversed throughout the year and helped RFM margins recover, although inflation dampened consumer demand to an extent.”

“Nonetheless, RFM Corporation continues to invest in its future growth as it completes this first quarter 2024 important capex projects in breadline and milk totaling Php1.5B. This capex, alongside the regular payment of dividends, were all funded by internally-generated cash and RFM parent company has no bank loans” said the CEO. 

Concepcion also said that “RFM’s outlook for 2024 is continued growth in topline and single digit growth in income. There is greater competition in the ice cream sector but improvement in margins is seen on most business segments with the softer prices of raw materials coming in 2024 compared to early 2023. 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. Our flour business is relatively strong and stable, and continues to support the vertically integrated model of our bread and pasta businesses.” 

RFM's robust balance sheet, according to the CEO, offers a ready-made war chest for any business opportunity that can increase the corporation's worth.