Photo from RFM Corporate Recruitment/FACEBOOK

MANILA, Philippines – RFM Corp. is bracing for tighter margins this year as rising fuel costs and a weaker peso threaten to push up operating expenses, even as the company continues to reward shareholders with steady dividends.

In a disclosure on Friday, the Concepcion-led food and beverage firm announced an additional P300 million cash dividend, equivalent to P0.08903 per share, payable on May 20 to shareholders on record as of April 23.

READ: RFM to expand ice cream, pasta production

This brings the total declared dividends for 2026 so far to P600 million.

RFM president and CEO Joey Concepcion III said the payout underscores the firm’s strong earnings base, with net income rising 14 percent to P1.6 billion in 2025, while revenues grew 3 percent to P22.3 billion.

But even as profits improved, management flagged emerging risks that could erode margins.

“The combination of peso depreciation and higher fuel costs will inevitably pressure margins,” Concepcion said, noting that the full impact of rising oil prices has yet to filter through to domestic goods.

These pressures come at a time when food manufacturers are grappling with volatile input costs.

Price adjustments

Traditionally, firms respond through price adjustments and cost-saving measures, but Concepcion signaled that uncertainty remains elevated, especially with geopolitical tensions influencing global energy prices.

The company said it hopes these pressures prove temporary, but acknowledged that the operating environment remains fluid.

Despite the headwinds, RFM is aiming to surpass its 2025 performance, albeit “at muted levels,” as it rolls out new products across its ice cream, pasta and ready-to-drink milk segments.

The company returned a hefty P1.5 billion in cash dividends to shareholders in 2025, equivalent to roughly P0.45 per share, marking one of its highest annual payouts on record.