FOOD and beverage firm RFM Corp. reported on Friday that its net income for the third quarter rose by 20 percent to P211 million on the back of strong revenues from its ice cream business.
Revenues in the period grew 7 percent from a year ago to P3.16 billion driven by robust sales from its Selecta ice cream brand, with demand boosted by the less-than-usual wet weather in the third quarter.
Revenues from its Royal and Fiesta pasta brands, Selecta Milk, and Sunkist juices were flat, but the company said it expects sales to pick up in the fourth quarter as the Yuletide season begins.
“There was sustained increase in the revenues of the Company’s private label bread unit that also helped offset the weaker performance of other institutional revenue sources like flour,” the company told the Philippine Stock Exchange.
RFM said the third quarter income growth puts it on track of beating its net income last year of P1 billion.
RFM recently declared cash dividend of P200 million or P0.057 per share, for shareholders as of record date of October 11, 2017. The dividends are payable on November 8, 2017.
“This second cash dividend declaration in 2017 completes the company’s 50 percent cash dividend on recurring net income. Early this year, RFM declared and paid P300 million in cash dividends,” RFM President and Chief Executive Officer Jose Concepcion 3rd said.
This brings the total cash dividends for 2017 to P500 million, the company said.
“On top of the 50 percent dividend payout and current share buyback program, RFM continues to ensure long term growth momentum with the planned P1 billion capex [capital expenditure]program for the ice cream joint venture that would ensure adequate production capacity over the long term,” Concepcion said.
“There is also a P250 million capex for RFM’s flour unit over two years to upgrade the flour mills and ensure competitiveness of the flour brands.”
RFM is engaged in the processing and manufacturing of flour and flour-based products such as pasta, sauces and cake mixes, milk and juice drinks, canned and processed meats, as well as ice cream.