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RFM earns P1B in 2016

Food and beverage company RFM Corp. reported a net income of P1 billion last year, up 11 percent from 2015.

This was achieved due to P12.7 billion in sales revenues which was up six percent from 2015.

RFM President and Chief Executive Officer Jose A. Concepcion III said that sales of the company’s consumer branded businesses, including pasta and ice cream, saw an 11 percent growth.

The growth in pasta was mainly driven by strong sales of the Fiesta brand even as the Royal brand continued to expand its product offerings in 2016 with the launching of the Royal pasta and sauce bundle as well as the Royal spaghetti sauce.

Concepcion added that Selecta ice cream sustained double digit growth rates supported by intensive selling, marketing, and distribution as well as continuing product innovations.

The 11 percent revenue growth of branded businesses was tempered by the six percent drop in institutional sales as flour prices remained soft.

“The continued growth in income allows RFM to generate sufficient cash flows to pursue a 50 percent of income cash dividend policy. At the RFM parent company level, we are debt-free. We have likewise embarked on a share buyback program,” Concepcion added.

Early this year, RFM declared P300 million in cash dividends to shareholders and is looking to declare the next tranche of dividends in the second half of 2017. “RFM continues to look at ways to further improve efficiencies in logistics, selling, and marketing activities that should ultimately generate more cash savings,” Concepcion said.