RFM Corp. eyes 14% profit growth in 2025

RFM Corp., which manufacturers the Selecta ice cream brand and other food products, is optimistic that it will hit P22.2 billion in full-year sales and P1.6 billion in profits this year even as operational headwinds hit consumer demand.

Should this be realized, sales would reflect a modest 2% growth, while profits would climb 14% year-on-year as the company is banking on its core brands – Selecta Milk, Selecta Ice Cream, Royal Pasta, and Fiesta Pasta – to continue to post healthy demand and positive market traction.

“These core businesses remain the primary engines of volume growth,” RFM said in a regulatory filing on Tuesday.

This came as RFM said its overall sales momentum for the year was tempered by softer flour prices and missed selling opportunities caused by the typhoons and flooding in Luzon, which temporarily hit sales of its joint venture in ice cream Magnum RFM Ice Cream Inc.

The Philippines was hit by Tropical Storm Ramil (international name: Fengshen) in October, affecting some 56,000 families or 173,000 individuals. At least seven were reported dead.

Several earthquakes also hit parts of the country, with a magnitude 7.4 earthquake that rocked Manay, Davao Oriental on October 10, 2025, and a magnitude 6.9 earthquake in Bogo City, Cebu on September 30.

The country was also hit by powerful typhoons in November, with Typhoons Tino (international name: Kalmaegi) and Uwan (international name: Fung-wong).

“November is seeing similar headwinds and moderation but we will be returning to double-digit capacity growth in December and January,” it said.

However, RFM noted that profit margins continue to hold steady, supported by the sustained volume gains in milk, pasta, and flour.

It also factored in the rising input and labor costs amid the nationwide wage increases implemented this year.

In the same filing, RFM announced plans to distribute P1.5 billion in cash dividends this year with P500 million scheduled for payment on December 19, equivalent to a 10% yield based on the P4.61 share price as on December 12.

“With zero bank loans at the parent level and a healthy cash balance, RFM can continue to uphold its dividend policy and fund expansion projects across several business segments – without putting stress on the balance sheet,” RFM Corp. chief executive officer Jose Ma. “Joey” Concepcion III said. — JMA, GMA Integrated News