Food and beverage company RFM Corp. is pre-terminating its remaining long-term P252-million loan this week amid stronger cashflow, making it debt-free in terms of long-term loans.
RFM told the local bourse the pre-termination of long-term loans follow the earlier payment made last May on its long-term loan amounting to P280 million.
“The stronger income performance in the first half of the year, plus faster collection of accounts receivables shored-up the cashflows, which allowed us to settle earlier our long-term loans,” said RFM President and Chief Executive Officer Jose Concepcion 3rd.
Concepcion said income and cashflow grew faster as the company sold more of the higher margin products and achieved better efficiencies with more managed warehousing costs.
RFM does not expect big capital expenditures as it just recently expanded its plant capacities, particularly the pasta plant to accommodate the higher production requirements of the newly acquired pasta brand Royal.
The company is gearing up for a stronger growth momentum in the second half as it approaches the peak months of September to December and as the election period heats up, driving higher consumption patterns like before.
RFM earlier said its net income surged by 11 percent to P472 million in the first half of 2015.