RFM Corp. registered a net income of P320.8 million for the first five months of the year, or seven times higher than last year, according to its disclosure to the Philippine Stock Exchange.
Results of robust sales of the food and beverage company were brought by several product innovations and more aggressive marketing campaigns in almost all their brands.
RFM president and chief executive officer Jose A. Concepcion III said, “The income momentum will hit P400 million by the end of June, and it is on its way to surpassing the original P500 million target for the full year.”
“Revenue growth and more managed cost structure and operational efficiencies pushed up operating margins and we believe that we have arrived at a sustainable business model that will propel RFM to its next level of growth,” Concepcion said.
RFM also disclosed to the PSE the annual dividend policy of 30 percent of its audited net income for its shareholders.
Even if RFM has been giving cash dividends in recent years, Concepcion said, the management has recommended the adoption of a more definite policy on dividends in response to the usual feedback from investors that having a clearer policy will allow them to evaluate better their investment returns. RFM share prices have been undervalued and only in recent months that prices have started to go up but these are still below the usual multiples accorded to other companies in the industry according to Concepcion. (PR)