RFM profits rose 14% to P1.2B in 2023

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 rose by 14 percent to P1.2 billion while sales climbed 7 percent to P20.7 billion.

RFM said the bottomline was bolstered by margin growth due to easing wheat and milk prices while sales were lifted by the milk, pasta, flour, ice cream and bread segments.

“[T]he hefty raw material price increases seen in 2022 and early 2023 reversed through the year and helped RFM margins to recover although inflation dampened consumer demand to an extent,” said Concepcion, the president and CEO of RFM.

He said RFM will continue to invest in high-growth businesses as bread and milk, with around P1.5 billion in capital spending allocated for these segments.Concepcion said RFM’s outlook for 2024 is continued growth in the top line and single-digit growth in income.

The CEO said there is greater competition in the ice cream sector but improvement in margins is seen in most business segments with the softer prices of raw materials coming in 2024 compared to early 2023.

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“Our Selecta Milk brand is also seeing sustained growth over the years and we are supporting this with new [capital expenditures] and innovations, like what we are also doing with our new Fiesta carbonara sauce,” Concepcion said.“Our flour business is relatively strong and stable, and continues to support the vertically integrated model of our bread and pasta businesses,” he added.

Further, RFM said its board approved a cash dividend of P250 million or P0.074 per share. This is payable on March 5 this year to shareholders of record as of Feb. 7, 2024. INQ