RFM Q1 2019 Revenues Grow 11%

Listed food and beverage company RFM Corporation disclosed that unaudited first quarter 2019 financial performance indicate RFM’s net sales reached P3.1B, an 11% growth versus last year.

RFM President and CEO Jose Ma. A. Concepcion III said that revenue growth drivers were institutional sales of flour and bread, pasta and sauce, as well as milk. 

“We continue to see healthy consumer appetite for our Royal and Fiesta pasta and sauce as well as in our Selecta Milk RTD for the first three months of the year. The late holy week in April this 2019, compared to March in 2018, softened our ice cream unit’s usual strong growth rate in the first quarter, but April sales are quite robust. Flour and institutional bread sales are growing at double digit rates as well.”

Concepcion, also noted that the 2019 benign monthly inflation rates boded well for sustained consumer expenditure that should also see a boost from mid-term election spending.

On the cost side, Concepcion added that “the relatively stronger peso compared to latter part of 2018 should help reduce input costs. However, we remain vigilant in monitoring the prices of raw materials especially sugar, packaging, milk and wheat. Hopefully, we see better pricing in these items in the coming months so manufacturers like RFM can sustain strong earnings growth.”

Last March, RFM paid a cash dividend of Php280 Million or Php0.0805 per share which was the first of two tranches to pay out the company’s 50% yearly cash dividend policy based on recurring net income. Audited net income for 2018 amounted to Php1.1B while audited net sales reached Php14B.

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