BIZ BUZZ: Concepcion gobbles up more RFM shares

“Severely undervalued” was how RFM Corp. CEO Jose Ma. A. Concepcion III described the shares of the food and beverage leader that owns the popular Royal and Fiesta pasta and sauces, Selecta Milk and White King mixes.

This is why he regularly goes back to the market and buys back RFM shares.

Just the other day, for example, RFM told the Philippine Stock Exchange that Concepcion had bought 14.069 million RFM shares for a total price of P53.2 million. He bought 10 million shares in the morning at P3.80 each and another 4.069 million shares in the afternoon at P3.70 a share.

That will not be the last time that he will buy RFM shares, he says, as he firmly believes in the company’s prospects, given the steadily growing economy and the expected bump in household spending with lowering interest rates and steady inflation.

Concepcion is already one of the largest controlling shareholders of RFM, which he also describes as having an “excellent” dividend yield as well as a strong balance sheet and income performance.

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RFM has declared a total of P1.3 billion in cash dividends for 2024, up from P850 million in 2023. The listed food and beverage company also owns half of the leading ice cream company in the Philippines that sells the Selecta, Magnum and Cornetto brands.

With sales coming in strong, especially with the holidays coming up, Concepcion should be getting his positive returns soon enough.