RFM Corp. saw its consolidated net income in the first nine months grow to P836 million on the back of the robust performance of its bread, flour and consumer units.
In a disclosure on Friday, the listed food manufacturer said the amount was a 10-percent increase from P758 million in the same period last year.
Jose Ma. Concepcion 3rd, RFM president and chief executive officer, said institutional sales recorded “strong growth,” noting that Selecta Fortified Milk had been boosting the company’s topline figures.
“RFM is quite bullish [about] its brands and businesses. We will continue to deploy the required funding to meet the growth in demand for our brands,” he added.
Net income attributable to the parent jumped by 10 percent to P835 million in January to September from P757 million a year ago.
Gross revenues nearly climbed by 10 percent to P10.77 billion, while total expenses rose by 9 percent to P9.54 billion.
The firm has also approved additional capital expenditures (capex) of P220 million to boost institutional and consumer brand production capacities, after allocating P400 million to expand its sauce and milk business earlier this year.
“To this end, we have a very strong cash position to back our capex. In fact, aside from the 50-percent cash payout policy and ongoing share buyback, we want our new capex to hasten the improvement of the returns to our shareholders over the long run,” Concepcion said.
RFM shares increased by 11 centavos or 2.14 percent to close P5.24 each on Friday.