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Ilabas ang ice cream!

Breakout point above 5.20
Caveat. Buy on breakout.

[Image: rfm.png?w=736]
...mandurugas din 'tong company na 'to eh Tongue

RFM allots P300M more to buy back shares

RFM Corp. is spending an additional P300 million to buy back more shares in the open market, after exhausting more than 70% of the allocated budget for the share buyback program.

In a disclosure to the stock exchange on Wednesday, the Concepcion-led firm said its board of directors has approved the additional appropriation to acquire more shares.

RFM launched the share buy-back program worth P300 million last Feb. 24, 2016, citing that the generally bearish market made the company’s share price of P3.80 at the time a good investment. The company then added another P300 million to the buyback program on Nov. 22 of the same year.

As of Jan. 30, the food manufacturer has managed to buy 102.05 million shares from the open market since 2016, valued at P437.81 million.

“The corporation intents to implement the share buy-back program as buying opportunity presents itself and up to the time when the total appropriated amount for the share buy-back program is exhausted,” the company said. 

At the same time, the company has declared cash dividends of 8.571 centavos for each share as of record date Feb. 15. This will be the first of two tranches under RFM’s 50% annual cash dividend policy based on its recurring net income. The dividends will be paid out on March 14.

RFM sells ice cream under the Selecta, Cornetto, and Magnum brands under a joint venture partnership with Unilever Philippines Ltd. The company also has under its portfolio the Royal and Fiesta pasta brands, as well as Selecta Milk and Sunkist juices.

The company generated P718 million in attributable profit in the first nine months of 2017, 5% higher against the P681 million it posted in the same period in 2016. Revenues were almost unchanged from year-ago levels at P3.74 billion.

For full-year 2017, the company expects earnings to breach the P1-billion mark, which it achieved for the first time in 2016 where it booked P1.002 billion in attributable profit.


source: http://bworldonline.com/rfm-allots-p300m...ck-shares/
...bulok pa din Tongue

RFM income up 6% in 2017 on strong pasta, ice cream sales

RFM Corp. reported a 6% profit increase for 2017, boosted by the robust sales of its ice cream and pasta products.

In a statement issued Monday, the listed food and beverage firm said net income increased to P1.064 billion last year, from the P1 billion it generated in 2016.

Sales revenues stood at P12.7 billion, as higher sales of Selecta ice cream and Fiesta pasta during the period helped offset price pressures in the commodity flour business. RFM had earlier noted that it will be ramping up efforts to grow its branded consumer brands to mitigate the effects of increased prices of raw materials.

Ice cream brand Selecta, which RFM developed in partnership with Uniliever Philippines Ltd., saw revenues climb 13% during this period. To support the rising demand for the product, the two companies have earmarked a capital expenditure of P1 billion to grow the ice cream business. Capex will be internally funded by the ice cream joint venture.

“RFM sees continued consumer consumption growth in the coming years and we are investing already to be able to take full advantage of that growth,” RFM President and Chief Executive Officer Jose A. Concepcion III said in a statement.

The company is in the process of upgrading its flour mill using P240 million of internally generated cash. The pasta business also includes the Royal brand, while other products under RFM’s portfolio are Sunkist Orange Pulp, Vitwater, and White King All-Purpose Flour.

“For 2018, we see sustained growth in our ice cream and faster growth in the pasta business. We also plan to push our RTD (ready-to-drink) milk lines for faster growth this year,” Mr. Concepcion added.

The company on Monday also disclosed that it will be giving out cash dividends worth P300 million, which is the first tranche of its 50% dividend payout from its 2017 earnings.

RFM is likewise undertaking a share buyback program worth up to P900 million. As of Feb. 7, the company has already bought back from the open market 102.76 million shares for an aggregate amount of P441.27 million.

Incorporated in 1957 originally as Republic Flour Mills, Inc., RFM’s business is divided into tow segments: the institutional segment for the flour, bakery, and other bakery products to institutional customers, and the consumer segment that manufactures and sells ice cream, milk, juices, pasta, and other rice-based mixes.


sources: http://bworldonline.com/rfm-income-6-201...eam-sales/
7-30

...bulok pa din Tongue wag bibilhin

RFM counts on flour mill upgrade to remain competitive as costs rise

RFM Corp. is banking on the upgrade of its flour mills to help it stay competitive in the market, as it continues to see rising prices of raw materials due to the weakening peso.

RFM Chief Financial Officer Enrique Oliver I. Rey-Matias said the capacity upgrade would improve competitiveness against other players, especially at a time when input costs are rising due to the weaker peso.

The listed ice cream and flour manufacturer earlier said it was investing P240 million to enhance the quality of flour it produces. RFM imports the wheat it uses to make flour from the United States, Australia, and Canada, among others.

“So essentially may (there are) ups and down sa (in the) price of raw material. Despite the ups and downs, price of flour is steady. Bottomline, there’s more supply to meet the growing demand. In that respect, you see more competition,” Mr. Rey-Matias told reporters after the company’s annual shareholders’ meeting in Mandaluyong last week.

“Kaya kami nag-upgrade ng flour (We upgraded our flour) so we can maintain our price and increase our volumes,” Mr. Matias said.

RFM’s share in the local market for flour is currently below 10%.

To offset the weaker performance of its flour business, RFM is focusing on strengthening its ice cream business, citing the potential to tap markets in the country, a large part of which remain underserved, Mr. Rey-Matias said.

“There’s a lot of people wanting to eat ice cream during a lot of occasions. What we’re doing is putting the ice cream freezer closer to the consumer,” he said.

RFM is one of the companies behind the Selecta ice cream brand, which was created through a joint venture partnership with global consumer goods giant Unilever.

Mr. Rey-Matias said RFM is deploying more ice cream freezers in sari-sari stores and local groceries to bring the Selecta brand closer to more Filipinos. In addition, it is also investing P1.1 billion to expand its current capacity for ice cream.

“Based on our estimation, this is enough to support the growth of our fast growing ice cream business over the next four years,” he said, noting that the demand for ice cream has been steadily growing in previous years, leading to the full utilization of most of its production lines.

Sales of Selecta ice cream jumped by 11% during the second quarter of 2018, which in turn supported a double-digit increase in the company’s revenues.

RFM recorded a 3% increase in net income attributable to equity holders of the parent to P525 million during the first six months of 2018, driven by an 11.6% jump in revenues to P6.31 billion.

For full year 2018, the company expects to sustain a double-digit growth in revenues and high-single digit increase in net income. 


source: http://www.bworldonline.com/rfm-counts-o...osts-rise/
10-29

...bulok pa rin...yung Magnum icecream lang masarap dito sa company na 'to   Big Grin

RFM earnings rise in Q3 on strong sales

RFM CORP. grew its attributable profit by 10% during the third quarter of 2018, as the strong sales of its ice cream, pasta, milk, and flour managed to offset the higher prices of raw materials during the period.

In a regulatory filing posted after trading hours on Friday, the listed firm reported a net income attributable to the parent of P232 million from July to September, higher than the P210 million posted in the same period a year ago. The uptick followed a 10% rise in net revenues to P3.49 billion during the quarter.

This pushed RFM’s attributable profit to P757 million for the nine months ending September, 5.43% higher year-on-year, driven by an 11.21% increase in revenues to P9.8 billion for the period. Earnings before interest, taxes, depreciation, and amortization (EBITDA) meanwhile rose by 8.57% to P1.37 billion.

The nine-month performance translates to an earnings per share of 2.17 centavos, higher than last year’s 2.06 centavos.

The Concepcion-led company attributed the higher sales to its flagship brands: Selecta for ice cream and milk, Fiesta and Royal for pasta, and White King for mixes. It noted that the combined sales from the three brands improved by 11% during the nine-month period, while institutional sales of flour and buns went up by eight percent.

RFM’s other products include Sunkist Orange Pulp and Vitwater.

“The strong topline growth was able to offset largely the impact of higher raw material costs and softening prices of flour,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III said in the filing.

RFM’s flour business has been affected by the weakening peso, as it imports the wheat it uses to make flour from the United States, Canada, and Australia, among others. The company said last July that it is investing P240 million to enhance the quality of flour it produces to offset further price pressures.

The food and beverage firm is also strengthening its ice cream business, investing P1.1 billion to expand its current capacity. The investment is expected to support the growing demand for more ice cream over the next four years.

It is also deploying more freezers in sari-sari stores and local groceries to bring the Selecta brand closer to more Filipinos.

Given RFM’s nine-month performance, Mr. Concepcion said they expect to achieve double-digit growth in terms of revenues for full-year 2018, while net income could grow by single digit. The company is banking on the start of the midterm election period, as well as the boost in sales during the Christmas holiday.

Incorporated in 1957, RFM also engages in non-food businesses, including barging services and leasing of commercial or office spaces for its operating divisions.


source: https://www.bworldonline.com/rfm-earning...ong-sales/
2-7

RFM income up 6% in 2018

EARNINGS of RFM Corp. grew by six percent in 2018, driven by strong sales for its ice cream, pasta, and milk products.

In a statement issued Wednesday, the listed food and beverage firm said preliminary and unaudited financials show that it booked a net income of about P1.1 billion in 2018, higher than the P1.04 billion net income it generated in the same period a year ago.

This followed an estimated P14.3 billion in sales, 12% higher year-on-year.

“We are very positive on the continued growth of our topline and bottomline this 2019, especially as we head into election season and as we continue to see brisk economic activity and moderating inflation,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III said in a statement.

RFM’s flagship brands include Selecta for ice cream and milk, Fiesta and Royal for pasta, and White King for mixes.

The company is banking on the Philippine economy’s growth to further support its expansion, as interest rates are now softening alongside the stronger peso. Mr. Concepcion also said that public and private sectors’ initiatives will likely result in better spending power from consumers.

At the same time, the company’s board of directors also approved a cash dividend of P280 million, equivalent to 8.05 centavos per share for shareholders as of Feb. 14. The dividends will be paid out on March 13.

This is the first of two tranches of cash dividend declarations the company will pay out, as per its 50% annual cash dividend policy based on recurring net income.

Last month, RFM secured approval from the Securities and Exchange Commission for its merger with three subsidiaries, namely Cabuyao Logistics Industrial Corp., Interbake Commissary Corp., and Invest Asia Corp.

The Concepcion-led company will issue 150.62 million shares for the transaction, 29.84 million of which will go to Cabuyao Logistics, 17.77 million for Interbake Commissary, and 103.01 million for Invest Asia.

RFM expects the integration to result to better efficiency in overall operations and lesser administrative expenses.

“The consolidation of assets of the four corporations will allow the procurement of financing and credit facilities under more favorable terms. The merger will make possible the more productive use of the properties of the constituent corporations,” the company said in an earlier disclosure.

Incorporate in 1957, RFM also engages in non-food businesses, including barging services and leasing of commercial or office spaces for its operating divisions.


source: https://www.bworldonline.com/rfm-income-up-6-in-2018/
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