RFM sells more treasury shares

MANILA, Philippines – The Concepcion-led food and beverage company RFM Corp. is selling an additional 4.363 million treasury shares.

In a disclosure to the stock exchange yesterday, RFM said the board approved on Jan. 4 the sale of treasury shares at P5 per share, raising about P21.815 million.

“The corporation often receives queries from quality investors if there are shares they can buy in substantial blocks. Management can seek board authority for additional treasury shares to be sold if and when warranted,” it said.

RFM said the shares sold represent less than one percent of the listed shares and therefore have no substantial effect on the public float level.

Treasury stock refers to the portion of shares that a company keeps in its own treasury. It may have come from a repurchase or buyback from shareholders, or it may have never been issued to the public.

The company reported a net income of P683 million in the first nine months of 2016, nine percent higher than the same period a year ago. Total revenues rose nine percent to P8.73 billion.

 RFM president and CEO Jose Concepcion III attributed the company’s strong performance to improved sales of branded consumers goods under Selecta ice cream, Fiesta Pasta and Selecta Milk.

It expects to sustain its topline growth for the whole of 2016 given its strong nine-month performance.