First Pacific Company (142) H2 2024 earnings summary

Executive summary

• Recurring profit rose 11.4% to US$672.5M, marking the fourth consecutive record year, with profit attributable to owners up 19.8% to US$600.3M, despite a 4.3% drop in turnover to US$10.1B.

• Strong operational performance from Indofood, MPIC, and PLDT drove record highs in recurring profit, contribution, and shareholder distributions, while PLP and Philex saw lower contributions.

• Board approved a record full-year distribution of HK25.50 cents per share, up 11% year-over-year.

• Gross asset value reached $5.4B, with a 6% CAGR since 2004; dividend income CAGR at 16% over 20 years.

• Investment-grade credit ratings maintained; net debt at $1.35B, with no major maturities until 2026.

Financial highlights

• Contribution from operations rose 10.7% to US$776.5M, led by Indofood and MPIC.

• Recurring EPS up 11.3% to US 15.85 cents; basic EPS up 19.7% to US 14.15 cents.

• Dividend income reached $305M, following a record $324M in 2023.

• Group net debt increased to $9.1B; consolidated gearing at 0.76x.

• Adjusted NAV per share at US$0.94 (HK$7.30), with a 38% discount to share price.

Outlook and guidance

• Management expects continued record-setting performance in 2025, supported by strong momentum in core holdings and a progressive dividend policy.

• Indofood targets organic growth, margin improvement, and ESG upgrades, with 2025 EBIT margin guidance at 20-22%.

• MPIC forecasts a third consecutive year of record core profit in 2025, driven by power, roads, and water.

• PLDT targets further capex reduction and network upgrades, while PLP expects stable market conditions and growth from new projects.

• Philex Mining's Padcal mine life extended to 2028, with Silangan mine production expected in 2026.