RFM folds in 3 subsidiaries

MANILA, Philippines — Shareholders of RFM Corp., the Concepcion-led food and beverage company, have given the green light to the merger of RFM Corp. and its subsidiaries.

RFM Corp. is merging its subsidiaries Cabuyao Logistics Industrial Corp. (CLIC), Interbake Commissary Corp. (ICC), and Invest Asia Corp. (IAC) under the parent firm which will be the surviving entity.

The move is advantageous to the parties and their respective shareholders for several reasons such as economies of scale and efficiency of operations, which will result from the integration of the administrative facilities of the four corporations.

It said the consolidation of assets of the four corporations will allow the procurement of financing and credit facilities under more favorable terms and would also make the subsidiaries more productive.

“In its regular meeting on July 25, 2018, the board of directors of RFM Corp approved the upstream merger among RFM Corp. as the parent company and surviving corporation and its subsidiaries CLIC, ICC and IAC. The subject merger was then approved by RFM Corp.’s stockholders in a special meeting called for that purpose and held on Sept. 7, 2018,” RFM said.

The company reported a three percent growth in net income in the first half of the year to P525 million from P508 million a year ago.

In the second quarter alone, net income grew by 1.29 percent to P314 million from P310 million a year ago, data from the company showed.

First half sales grew to P6.3 billion from P5.7 billion a year ago.

Despite the softening of prices of flour and the rise in commodity price, the business still performed well, RFM president and CEO Jose Concepcion III said earlier.

Moving forward, Concepcion said the company sees revenues hitting double digits for the year, which could translate to a high single digit net income.

“For the full year 2018, RFM expects to achieve a double-digit growth in revenues and mid to high single digit income expansion,” he said.

RFM products include market leaders in pasta, ice cream and milk.