RFM Corp. said net income in the first quarter of 2018 rose seven percent to P211 million from P198 million year-on-year a year ago on the back of a double-digit rise in revenues.
RFM said in a disclosure to the stock exchange revenues climbed 10 percent in the first three months of 2018 to P2.8 billion from P2.55 billion a year ago.
First- quarter net operating margin, however, dipped slightly to P272 million from P275 million on year.
RFM president and chief executive Jose Concepcion III said the company posted growth in all businesses, including ice cream, flour, pasta, milk and private label.
First-quarter revenues of ice cream category leader Selecta grew nine percent year on year, while institutional sales, including the bakery business, rebounded with a 10 percent increase.
The combined sales of RFM’s other flagship brands—Fiesta pasta, Royal pasta, White King mixes and Selecta Milk—also rose 12 percent.
RFM said the company’s the first-quarter financial performance suggested a better year ahead.
RFM will spend P1 billion to fund expansion and the ice cream business joint venture, as well as investments in flour milling, supply chain, milk, pasta and sauce.
“For 2018, we expect to sustain this strong first-quarter momentum with the recent launch of our Selecta Fortified Milk TV campaign and upcoming marketing initiatives for our pasta, sauce and ice cream, over the course of 2018,” Concepcion said.
RFM said it expects to continue its policy of declaring a 50-percent dividend payout from recurring net income and pursue an ongoing share buyback program.
RFM in January said it would spend an additional P300 million to buy back more shares in the open market, after exhausting over 70 percent of the budget for the program.
RFM launched the share buy-back program worth P300 million on Feb. 24, 2016.