Robust sales of milk, pasta boost RFM bottom line in 2020

Concepcion family-led RFM Corp. saw a double-digit growth in its key food and beverage brands in 2020 in line with sustained demand for essential items among locked-down consumers during this lingering COVID-19 pandemic.

Citing preliminary data, RFM said its consumer brand Selecta Fortified Milk grew by 56 percent last year while pasta brands Fiesta and Royal expanded by 16 percent and 44 percent, respectively.

White King hotcakes and other bowl mixes also posted a 36-percent increase as consumers purchased and cooked more at home during the lockdown.

“While the 2020 audited financials are still not available, anecdotal evidence points to a better performance in 2020 compared to 2019 in revenues and income. On the one hand, we saw our Selecta Milk, Royal and Fiesta pasta as well as the White King mixes and flour business units take advantage of the pantry loading behavior of the lockdown period,” RFM chief executive officer Jose Ma. Concepcion III disclosed to the Philippine Stock Exchange on Monday.

On the other hand, Concepcion noted that Selecta Ice cream and bread bun revenues had been affected by the pandemic-induced closures of fast-food chains and stores.

For 2021, RFM continues to watch trends in consumer sentiment and income as well as the ability of the coming vaccines to restore normalcy in the economy and daily lives of the people, he added.

Meantime, Concepcion added that RFM would continue to tighten control over expenses and capital expenditures while things remain uncertain.

“We have a strong balance sheet in RFM which supports the continuation of our dividend policy and share buyback programs. While RFM continues to look out for any M&A (merger and acquisition) opportunities to boost shareholder value, the organic growth in milk, ice cream, pasta and mixes will be our growth drivers for 2021,” Concepcion said.

RFM’s board of directors likewise approved a cash dividend of P350 million or 10.387 centavos per share payable on March 8 with record date as of Feb. 8. This is one of the usual two dividend declarations made every year by the company.

RFM dividends per share have improved from 14 centavos in 2017 to 16 centavos by 2019 and to 21 centavos in 2020. Based on the end-2020 share price of P4.56 per share, RFM’s dividend yield stood at 4.6 percent. INQ