RFM Pre-Terminates Long-Term Loans

Mandaluyong—(PHStocks)—With stronger cashflow, RFM Corp. (PSE: RFM) is pre-terminating its remaining PhP252 million long-term loan this week, following the earlier payment made last May on its long-term loan amounting to PhP280 million.

RFM President and CEO Jose A. Concepcion III said that “the stronger income performance in the first half of the year, plus faster collection of accounts receivables shored-up the cashflows, which allowed us to settle earlier our long-term loans. This will bring down long term debt to zero, making RFM long term loan debt-free. If we factor in the short term loans, D/E ratio is only 5%.”

RFM reported last week in its Annual Stockholders’ Meeting that their first six months’ net income increased by 11% to P472 Million. At the operating profit level, RFM posted P665 Million income and an even higher growth rate of 17%.

Concepcion also explained that the income and cashflow grew faster as the company sold more of the higher margin products and achieved better efficiencies with more managed warehousing costs.

Moving forward, the company does not expect big capital expenditures as it just recently expanded its plant capacities, particularly the pasta plant to accommodate the higher production requirements of the newly-acquired pasta brand Royal.

RFM is reportedly gearing up for a stronger growth momentum in the second half as it approaches the peak months of September to December and as the election period heatsup, driving higher consumption patterns like before.