<article>Philippine-based food and beverage company <a style="color: #000080" href="http://www.rfmfoods.com">RFM Corp</a> aims to be debt-free this year by pre-terminating its remaining $5.5 million (P252 million) long-term loan.</article>

Philippine-based food and beverage company <a style="color: #000080" href="http://www.rfmfoods.com">RFM Corp</a> aims to be debt-free this year by pre-terminating its remaining $5.5 million (P252 million) long-term loan.
RFM president and CEO Jose Concepcion III said the company is able to settle earlier its long-term loans because of its stronger income performance in the first half of the year, plus faster collection of accounts receivables shored-up the cashflows.
The Concepcion-led company informed the stock exchange that it will complete the pre-termination task this week, following the earlier payment made last May on its long-term debt amounting to P280 million.
Also read: <a style="color: #ff0000" href="http://www.dealstreetasia.com/stories/phs-liquor-group-emperador-pay-off-debt-expand-2015-3662/">PH liquor giant Emperador to pay off debt, expand to EU &amp; Africa</a>
&#8220;This will bring down long term debt to zero, making RFM long term loan debt-free,&#8221; Concepcion said. &#8220;If we factor in the short term loans, D/E ratio is only 5 per cent.&#8221;
He explained the income and cashflow grew faster as RFM sold more of the higher margin products and achieved better efficiencies with more managed warehousing costs.
Also read: <a style="color: #ff0000" href="http://www.dealstreetasia.com/stories/metro-pacific-secures-561m-debt-hikes-stake-in-meralco-5180/">Metro Pacific secures $561m debt, hikes stake in Meralco</a>
RFM disclosed during its annual stock holders meeting last week that the company&#8217;s first six months’ net income grew by 11 per cent to P472 million. At the operating profit level, RFM posted P665 million income and an even higher growth rate of 17 per cent.
&#8220;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,&#8221; the company said in a statement.
RFM&#8217;s last trading price increased 0.95 per cent or P0.040 to close at P4.26.
Also read:
<a style="color: #ff0000" href="http://www.dealstreetasia.com/stories/ph-realty-firm-vista-land-raises-300m-from-7-year-debt-offer-7831/">PH realty firm Vista Land raises $300m from 7-year debt offer</a>
<a style="color: #ff0000" href="http://www.dealstreetasia.com/stories/globe-telecom-raise-310m-debt-pnb-3827/">PH&#8217;s Globe Telecom to raise $310m debt from Philippine National Bank</a>

Philippine-based food and beverage company RFM Corp aims to be debt-free this year by pre-terminating its remaining $5.5 million (P252 million) long-term loan.

PH food firm RFM pre-terminates $5.5m debt

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

PH food firm RFM pre-terminates $5.5m debt

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief