The governing board of one of the country’s biggest food and beverage companies, RFM Corporation, has approved P200 million in cash dividends.
On Wednesday, RFM Corporation CEO Jose Ma. Concepcion III said the approved cash dividend was P0.05936 per share payable on 18 February 2025 with a record date as of 22 January 2025.
RFM raked P1.27 billion in income from P20.7 billion in revenues in 2023.
Concepcion, who has also been buying shares in the market in 2024, said that RFM sees a better 2024 full-year performance from its branded consumer and institutional businesses in both sales and income.
According to its preliminary and unaudited figures, RFM said 2024 total revenues are on track to hit P22 billion while income is expected to grow double-digit to the P1.4 billion to P1.5 billion range.
For the new year 2025, Concepcion said they expect to sustain the strong performance of RFM’s brands and businesses with input price inflation within reasonable levels.
Concepcion also noted the strong underlying consumer demand for RFM’s Fiesta and Royal pasta products that buoyed 2024 sales on top of the purchases of local government units for their Christmas baskets for constituents.
RFM declared P1.3 billion in cash dividends in 2024, up from P850 million in 2023.
At the share price of P3.87 at the end of 2024, RFM’s 2024 dividend yield is 10 percent.
The listed food and beverage company (PSE: RFM) also owns 50 percent of the leading ice cream company in the Philippines that sells Selecta, Magnum, and Cornetto brand as well as the leading pasta brands Royal and Fiesta pasta and sauces. RFM also owns the Selecta Milk and White King mixes brands.
“RFM has no debts and has a strong balance sheet that enables our steady declaration of cash dividends. We have also completed some big capex in 2024 like the new Silang, Cavite bakery plant, and new Selecta Milk lines, and will just be on the lookout for opportunities to grow our businesses. Nevertheless, our pipeline of new products is quite packed for our ice cream, pasta, and milk brands which will ensure organic growth for RFM in the near term,” said Concepcion.