RFM 2023 profits rise 14%
MANILA, Philippines —Tycoon Jose Ma. A. Concepcion III’s food manufacturing group RFM Corp. posted strong profit growth in 2023 as improving margins overcame softer consumer demand.
RFM said unaudited net income last year expanded by 14 percent to P1.2 billion while sales climbed 7 percent to P20.7 billion.
RFM said the bottom line was bolstered by margin growth due to easing wheat and milk prices while sales were lifted by milk, pasta, flour, ice cream and bread segments.
“[T]he hefty raw material price increases seen in 2022 and early 2023 reversed thru the year and helped RFM margins to recover although inflation dampened consumer demand to an extent,” said Conception, the president and CEO of RFM.
READ: Companies’ cost inflation is slowing but shoppers may wait for lower prices
He said RFM will continue to invest in high-growth businesses as bread and milk, which around P1.5 billion in capital spending allocated for these segments.
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“RFM’s outlook for 2024 is continued growth in topline and single digit growth in income. There is greater competition in the ice cream sector but improvement in margins is seen on most business segments with the softer prices of raw materials coming in 2024 compared to early 2023,” Concepcion said.
Article continues after this advertisementREAD: RFM profit dropped in 2022
“Our Selecta Milk brand is also seeing sustained growth over the years and we are supporting this with new capex and innovations, like what we are also doing with our new Fiesta carbonara sauce. Our flour business is relatively strong and stable, and continues to support the vertically integrated model of our bread and pasta businesses,” he added.
RFM said on Wednesday is board approved a cash dividend of P250 million or P0.074 per share payable on March 5 this year to shareholders of record as of Feb. 7, 2024.
