Concepcion-led RFM Corp. reported a double-digit growth in its key businesses last year.
In a statement, RFM said it is confident 2020 net income and revenue were better than the previous year on the robust sales of consumer brands Selecta Fortified Milk, Fiesta and Royal and White King hotcakes.
Selecta grew 56% while pasta brands Fiesta and Royal posted a 16% and 44% growth, respectively, from year ago levels.
White King hotcakes and other bowl mixes also enjoyed a 36% increase as consumers purchased and cooked more at home during the lockdown
“While the 2020 audited financials are still not available, anecdotal evidence points to a better performance in 2020 compared to 2019 in revenues and income,” said RFM CEO and president Joey Concepcion.
On the other hand, revenues from Selecta Ice cream and bread bun were hit by the pandemic-induced closures of fastfood chains and stores.
For 2021, RFM continues to watch trends in consumer sentiment and income as well as the ability of the coming vaccines to restore normalcy in the economy and daily lives of the people, Concepcion said.
Meanwhile, RFM will continue to tighten control over expenses and capex while things remain uncertain.
Concepcion said the company will pursue its share buyback programs as well as continue to pay dividends to shareholders given its strong balance sheet.
RFM’s board approved Monday a cash dividend of P350 million or P0.10387 per share, payable on March 8 to shareholders as of record of February 8. The company’s dividends per share have grown from 14 centavos in 2017 to 16 centavos by 2019 and to 21 centavos last year.
While RFM continues to look out for any M&A opportunities to boost shareholder value, Concepcion expects the organic growth in milk, ice cream, pasta and mixes to be the firm’s growth drivers for 2021.