RFM selling P14.7-M treasury shares

MANILA, Philippines - The Concepcion led food and beverage company, RFM Corp. is selling more treasury shares.

In a disclosure to the Philippine Stock Exchange yesterday, RFM said its board approved the sale of three million treasury shares on Dec. 21.

At P4.90 per piece, RFM is expected to raise P14.7 million. A long-term investor has signified interest to purchase the treasury shares.

RFM said a long-term hold on the subject treasury shares will result in stability.

Treasury shares refer to the portion of shares that a company keeps in its own treasury may come from a repurchase or buyback from shareholders, or it may have never been issued to the public.

Last month, the company sold at least 9.5 million treasury shares for P4.40 a piece or P42 million.

The company also implemented another round of share buyback worth P600 million.

 “The corporation intends to implement the share buyback program as buying opportunity presents itself and up to the time when the total appropriated amount for the share buyback program is exhausted. Management can still seek additional budget for the share buyback program if and when warranted,” it said.

The company reported a net income of P683 million in the first nine months of the year, up nine percent year on year.

Total revenues reached P8.73 billion, nine percent higher than the previous year.

RFM president and CEO Jose A. Concepcion III attributed the company’s strong nine-month performance to strong sales of branded consumers goods under Selecta ice cream, Fiesta Pasta and Selecta Milk.

RFM expects to sustain growth in its topline for the rest of the year.