First Pacific Company (142) H2 2025 earnings summary

Executive summary

• Gross asset value at December 31, 2025, was $5.3 billion, with Indofood comprising over one-third and MPIC valued at $1.3 billion.

• Record recurring profit rose 10% to $740 million, and net profit also increased 10% to $661 million, both record highs, driven by Indofood and MPIC.

• Turnover reached $10.2 billion, up 2% year-over-year, led by Indofood and MPIC, partially offset by PacificLight.

• Dividend distribution reached a record HK$0.27 per share, including a special dividend from the Maynilad IPO.

• Management remains confident in medium-term earnings growth, supported by expanding demand in Asian markets.

Financial highlights

• Contribution from operations rose 8% to $837.9 million, led by MPIC and Indofood.

• Dividend income at head office was $311 million, with interest coverage ratio improving to 4.5x from 4x.

• Net interest expense fell 11% to $68.3 million; overall head office costs down 6%.

• Gross profit margin stable; consolidated gearing ratio improved to 0.67x from 0.76x.

• Over 70% of free cash returned to shareholders, balancing reinvestment needs, especially for PLP's new gas project.

Outlook and guidance

• Management expects 2026 to be better than 2025, with Indofood showing high confidence barring major geopolitical disruptions.

• Indofood expects 2026 capex at IDR9.5 trillion, with sales and EBIT margin growth targets for ICBP and Bogasari.

• PLDT projects mid-single-digit growth in service revenues and EBITDA for 2026, with capex intensity to decline.

• Maynilad's water tariff adjustment in 2026 is expected to be 4%, lower than the previous year's 10%.

• Cautious optimism prevails due to defensive, consumer-facing businesses, despite global uncertainties.