FIRST PACIFIC(HK:00142)2024-09-19 09:20Financial Performance - The company reported a revenue of $5 billion, representing an 8% increase year-over-year[9]. - The recurring profit increased by 13%, while the reported profit rose by 20%[9]. - The company's revenue decreased by 8% to $5 billion, primarily due to a decline in PLP revenue and a 6% depreciation of the Indonesian Rupiah against the US dollar[18]. - Regular profit increased by 13% to $339.1 million, reflecting higher profit contributions from Indofood, MPIC, and PLDT[18]. - Reported profit decreased by 20% to $277.8 million, mainly due to a 6% depreciation of the Indonesian Rupiah against the US dollar, resulting in non-cash foreign exchange losses[18]. - Core profit rose by 22% from IDR 47 trillion (USD 3.11 billion) to IDR 57 trillion (USD 3.547 billion), driven by improved operating profits across all business groups[29]. - Core net profit increased by 3% to 18 billion pesos ($314.5 million) from 17.6 billion pesos ($318.3 million)[43]. - The profit attributable to the owners of the parent company for the first half of 2024 was $277.8 million, a decrease of 19.6% from $345.6 million in 2023[161]. Assets and Liabilities - The total assets reached $27 billion, reflecting a 3% growth[9]. - The net debt of the company is around $1.3 billion[9]. - Total debt for Indofood increased by 14% to IDR 73.4 trillion (USD 4.5 billion) as of June 30, 2024, up from IDR 64.5 trillion (USD 4.2 billion) at the end of 2023, with 34% maturing within the next 12 months[30]. - The total liabilities amounted to $15,799.3 million, with a notable portion related to infrastructure at $7,930.6 million[149]. - The total liabilities related to assets classified as held for sale increased from $4,592.6 million to $5,021.5 million, marking an increase of about 9.34%[137]. - The total current liabilities increased significantly from $1,814.9 million to $2,059.6 million, marking an increase of about 13.5%[137]. Market Capitalization and Dividends - The market capitalization of the company is approximately $20 billion, showing a 17% increase[9]. - The interim dividend per share is set at 1.54 cents, totaling $65.3 million[9]. - The interim dividend declared by First Pacific is HKD 0.12 (USD 0.0154) per share, representing a 14% increase from HKD 0.105 (USD 0.0135) in the first half of 2023, consistent with the growth in recurring profit[21]. - The interim cash dividend declared is 50 pesos ($0.85) per share, representing 60% of core net profit[47]. Investments and Contributions - The company focuses on investments in fast-growing emerging economies in Asia, particularly in consumer food, telecommunications, infrastructure, and natural resources[5]. - Indofood's profit contribution to the group increased by 22% to USD 167.6 million in the first half of 2024, compared to USD 137.2 million in the same period of 2023, reflecting an increase in core profit[28]. - MPIC's consolidated revenue increased by 22% to 35.8 billion PHP (624.4 million USD) from 29.4 billion PHP (532.3 million USD)[57]. - MPIC's operating profit contribution increased by 20% to 14.8 billion PHP (258.8 million USD) in the first half of 2024, driven by strong energy sales and increased traffic and tolls[56]. Foreign Exchange and Market Risks - The company faces foreign exchange risk due to unhedged USD net debt, which could affect performance based on currency fluctuations[110]. - The group's subsidiaries and associates' performance is primarily denominated in local currencies, exposing the group to foreign exchange risks upon consolidation into USD[105]. - The estimated impact on adjusted net asset value for a 1% change in exchange rates is $45.5 million, translating to an impact of 8.35 HK cents per share[106]. - A 1% change in the USD exchange rate is expected to impact the group's reported profit by $33.7 million, resulting in a net profit impact of $12.4 million[111]. Operational Performance - The average interest rate for First Pacific's debt increased from approximately 5.4% at the end of 2023 to about 5.6% due to the high interest rate environment[23]. - The cash interest coverage ratio stands at approximately 4.3 times[9]. - The cash interest coverage ratio for Indofood is approximately 6.7 times as of June 30, 2024[30]. - The company plans to continue reducing certain assets and use the proceeds primarily to pay down debt[17]. Employee and Compensation - The number of employees increased to 103,290 as of June 30, 2024, from 101,352 in 2023, marking a growth of 1.9%[124]. - Total compensation for key management personnel amounted to $65.2 million for the six months ended June 30, 2024[199]. - Employee compensation costs were $434.7 million in the first half of 2024, slightly down from $452.7 million in 2023, indicating a focus on cost efficiency[155]. Capital Expenditures and Investments - Capital expenditures decreased by 14% to 35.1 billion pesos ($612.9 million), representing 34% of service revenue, down from 41% in the first half of 2023[44]. - The capital expenditure guidance for 2024 is maintained at 75 billion to 78 billion pesos, focusing on network capacity and data traffic growth[45]. - Total capital expenditure commitments as of June 30, 2024, amounted to $1.41 billion, down from $1.86 billion as of December 31, 2023[192]. Miscellaneous - The company plans to continue product innovation and expand distribution to enhance profitability and market penetration[34]. - The company is focusing on market expansion strategies to enhance its competitive position in the industry[139]. - The company is investing in new product development and technology to drive future growth and innovation[139].