RFM approves P181 M cash dividends

MANILA, Philippines - RFM Corp., the listed food and beverage company owned by the Concepcion family, has approved special cash dividends amounting to P181 million.

In a disclosure, RFM said the special cash dividend is equivalent to 20 percent of the P905 million income of RFM last year.

The special cash dividends are on top of the P272 million dividends, declared and paid by the company early this year and the ongoing P300-million share buyback program. 

Concepcion said robust income and stable cash flow allowed RFM to build up its cash holdings during the year.

To date, RFM has declared dividends equivalent to 50 percent of its 2015 net income and is looking to declare a regular 50 percent dividend payout rate per year.

At the current market price of P4.21 per share at the close of last week, the total dividends of P0.13 per share from the 2015 net income represent a 3.1 percent per annum yield, according to RFM.

In the first half of the year, RFM reported a net income of P508 million, an increase of eight percent compared to a year ago on the back of strong sales.

The company’s sales revenues hit P5.8 billion, up by over five percent from the revenues posted in the same period last year. 

Sales of Selecta Ice Cream and Fiesta pasta posted strong growth for the period.

With the rosy performance in the first half of the year, RFM expects to sustain the topline growth momentum for the second half of the year through the introduction of more product innovations for the consumers.

It has an aspiration target to hit P1 billion in net income this year.

Last year’s P905 million income is nine percent over 2014 income as the company achieved P12.2 billion in sales revenues or an increase of 11 percent over the revenues posted for the same period last year.

It is the highest sales level posted so far by the company, which has been consistently growing in sales and income over the past years, RFM said.

Incorporated in 1957 as Republic Flour Mills Inc., the company today is a food and beverage company known for nurturing and growing heritage local brands like Pop Cola and Sarsi, under previous subsidiary Cosmos Bottling Corp., and Selecta ice cream, now under the joint venture with Unilever. The Company is also known for its major brands like White King Fiesta, Selecta Milk, Sunkist, and Swift.