RFM Corporation Declares Special P500 Million Cash Dividend for a Total of P1.3 Billion in 2024 on the Back of Strong Income Growth and Healthy Cash Position

​RFM Corporation CEO Jose Ma. A. Concepcion III said that its Board of Directors approved a cash dividend of P500 million or P0.148388 per share payable on December 2, 2024, with a record date of November 6, 2024.

Concepcion said that RFM’s strong balance sheet and good income growth arising from better margins and higher volumes from key business units allowed for more cash dividends, amidst the completion of big-ticket capex items in mid-2024.

Strong sales of Royal and Fiesta Pasta, as well as of Selecta Ice Cream thru the Unilever-RFM joint venture company, have pushed volumes up even as better margins drove income higher. Based on preliminary, unaudited financials from the Company, sales from January to September reached P15B or 3% higher from year ago while income rose 14% to Php1.1B as of September 2024. Full year income last 2023 was P1.3B.

Concepcion also attributed the good performance of RFM to launches of new innovative products in key categories like milk, pasta and ice cream every year to spur growth organically. For the current year 2024, the company has declared a total of P1.3B in dividends, or P0.385809/share, higher than the P850M in 2023. At the share price of P3.75 last October 18, RFM’s dividend yield is 10.3%.

The CEO of the listed food and beverage company (PSE: RFM) also said that major capex have been completed and cash in the balance sheet is adequate to fund the latest and biggest cash dividend declaration in recent years.
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On his outlook for 2025, Joey Concepcion said that the recent escalation of the war in the Middle East, if not contained soon, could push inflation via higher oil prices and eventually affect consumer demand, although the midterm election spending can provide some consumption support next year. Concepcion also added that economic expansion and increased employment are strong anchors of consumer spending and so far, these economic indicators point to continued resilience and thus provide good support for spending.