Washington H. Soul Pattinson and Company (SOL) H2 2024 earnings summary

Executive summary

• Portfolio value reached AUD 11.8 billion as of July 31, 2024, up from AUD 10.8 billion in FY23, with strong performance across all segments and a 12% total return after dividends.

• Net cash flows from investments increased 10.3% to AUD 468 million, supporting a fully franked dividend of AUD 0.95 per share, up 9.2% from the prior year.

• Statutory NPAT declined 27.8% to AUD 498.8 million, mainly due to lower contributions from Brickworks and New Hope.

• Over the past three years, NAV has grown at 13.5% per annum, dividends at 15.3% per annum, and net assets at 13.5% per annum, outperforming benchmarks.

• Maintained a diversified investment approach with over 200 investments, focusing on long-term, resilient, and cash-generative businesses.

Financial highlights

• Net profit after tax was AUD 499 million, down 27.8% year-over-year, mainly due to lower results from Brickworks and New Hope.

• Net asset value per share increased 12% after adding back dividends, slightly underperforming the market by 1.4%.

• Total shareholder return over 20 years averaged 11.7% per annum, 3% above the market, with an 820% increase in value versus 434% for the All Ordinaries Accumulation Index.

• Ordinary dividends have increased every year since 2000, with a 24-year CAGR of 9.6%.

• Net cash flow from investments rose 10.3% to AUD 468 million, driven by credit and emerging companies portfolios.

Outlook and guidance

• Focus remains on increasing cash generation, portfolio growth, and risk management, with continued reinvestment in private equity and credit.

• Capital raising in August 2024 strengthens cash position for new investments and supports ongoing dividend growth.

• The company is positioned to withstand macroeconomic uncertainty, with flexibility to rebalance and pursue new opportunities.