First Pacific Company (142) H1 2024 earnings summary

Executive summary

• Recurring profit rose 13% year-over-year to a record US$339.4 million for 1H 2024, while reported profit declined 20% to US$277.8 million due to currency depreciation and non-cash FX losses.

• Turnover decreased 8% to US$4,995.1 million, mainly from lower revenues at Indofood and PLP, offset by higher contributions from MPIC and PLDT.

• Interim distribution increased 14% to HK12.00 cents (US 1.54 cents) per share, totaling US$65.3 million.

• Indofood, MPIC, and PLDT achieved record-high revenues, driven by strong demand in food, data services, and power.

• Management remains confident in medium-term earnings growth, supported by strong positions in fast-growing Asian markets.

Financial highlights

• Gross asset value at US$4.9 billion as of June 2024, with Indofood as the largest asset at over US$1.6 billion.

• Recurring basic EPS up 13% to US 8.00 cents; basic EPS down 19.6% to US 6.56 cents year-over-year.

• Head Office net debt at US$1.3 billion; interest coverage ratio at 4.3x.

• Group gearing ratio at 0.75x as of June 2024.

• Net cash from operating activities was US$678.8 million for the first half.

Outlook and guidance

• Management expects continued earnings growth, supported by product and service expansion in high-growth Asian markets.

• Indofood targets organic growth, margin improvement, and ESG upgrades; ICBP expects 2024 EBIT margin of 19-21% and sales growth of 5-8%.

• PLDT projects record service revenues and EBITDA in 2024, with capex of P75-78 billion and net debt/EBITDA target below 2.0x.

• MPIC expects medium-term growth in toll roads and water, with Maynilad and MPTC targeted for public listing or monetization by 2027.

• PLP to accelerate low-carbon initiatives and expand renewable energy projects.