FOOD and beverage firm RFM Corp. saw its full-year 2017 net income grow 6 percent to over P1 billion, boosted by strong sales revenues.
RFM told the Philippine Stock Exchange on Monday that its net income in 2017 reached P1.06 billion, or higher by P6 million versus the P1 billion registered in 2016. It said sales revenues reached P12.7 billion.
RFM President and Chief Executive Officer Jose Concepcion 3rd said the firm’s consumer brand businesses such as Selecta ice cream and the Fiesta pasta line, coupled with the institutional bun line business, led topline growth despite continuing price pressures in the commodity flour business.
Selecta alone contributed 13 percent to the company revenues year-on-year. The strong ice cream revenue growth and growth in the pasta branded businesses were mitigated by the softer institutional sales as flour prices remained soft.
“With resilient consumer branded businesses, RFM continues to see healthy income growth and as a result, we have just recently declared a P300M cash dividend which is just the first tranche of the 50 percent dividend payout of our 2017 P1.06 billion net income, as well as another P300M budget for our continuing share buyback program,” Concepcion said.
Just recently, Selecta partnered with Unilever on a P1 billion capital expenditure program to meet growth requirements in the medium term, with P240 million already internally funded.
“RFM sees continued consumer consumption growth in the coming years and we are investing already to be able to take full advantage of that growth,” Concepcion said.
“For 2018, we see sustained growth in our ice cream and faster growth in the pasta business. We also plan to push our RTD milk lines for faster growth this year,” he added.
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