FIRST PACIFIC(HK:00142)2022-09-22 09:37Financial Performance - First Pacific Company Limited reported a revenue of $5.1 billion, representing a 20% increase compared to the previous period[7]. - The company achieved a recurring profit of $263.3 million, which is a 26% increase year-on-year[7]. - The net profit attributable to shareholders was $241.7 million, reflecting a 34% increase from the prior year[7]. - The company's revenue increased by 20% to $5.1 billion, driven by higher average selling prices of palm oil and other key products from Indofood[15]. - Reported profit increased by 34% to $241.7 million, reflecting the rise in regular profit and the recognition of non-recurring income[15]. - The company reported a total revenue of $1,784 million for the period ending June 30, 2022, representing a significant increase compared to $1,578.8 million in the previous period[126]. - The net income for the same period was $558 million, up from $399 million, indicating a growth of approximately 39.9%[126]. - The company reported a profit of $589.5 million for the six months ended June 30, 2022, compared to $497.6 million in the same period of 2021, representing an increase of approximately 18.5%[124]. Asset and Debt Management - The total assets of First Pacific increased by 3%, reaching approximately $3 billion[7]. - As of June 30, 2022, total debt amounted to approximately $1.5 billion, with a net debt of about $1.3 billion and an average maturity of 3.3 years[22]. - The company's net debt increased from $1,322.2 million on January 1, 2022, to $1,318.8 million by June 30, 2022, reflecting a change of $3.4 million[88]. - The company's debt-to-equity ratio rose to 1.09x as of June 30, 2022, compared to 0.99x on December 31, 2021, indicating a higher level of leverage[90]. - The total debt of the group amounts to $11,010.8 million, with $4,911.0 million in US dollars and $4,319.4 million in Pesos[102]. - The group has a net debt of $8,264.5 million after accounting for cash and cash equivalents[102]. Dividend and Shareholder Returns - The interim dividend per share was set at $0.135, a 22% increase compared to the previous year[8]. - The company announced an interim dividend of HKD 0.105 per share ($0.0135), a 17% increase from the previous year's interim dividend[19]. - The interim cash dividend declared was $0.105 per ordinary share, totaling $57.4 million, an increase from $49.9 million in 2021[148]. Sector Contributions - Contribution to operating profit by country showed the Philippines at 46% with $1.391 billion, Indonesia at 41% with $1.244 billion, and Singapore at 12.9% with $39 million[7]. - By sector, consumer food contributed 40% with $121 million, telecommunications 24% with $73 million, infrastructure 33% with $98.7 million, and natural resources 3% with $9.8 million[7]. - The company anticipates continued growth in its consumer goods and infrastructure segments, supported by strategic investments and market expansion initiatives[134]. Investments and Acquisitions - First Pacific's investments in Indofood, PLDT, and MPIC reflect a balanced asset allocation in core industries[3]. - An investment of $20 million was made in Voyager Innovations Holdings Pte. Ltd. to expand its digital ecosystem[18]. - The company subscribed to Philex's rights issue for a total of PHP 800 million ($15.1 million) to support the development of the Silangan project[18]. - MPIC signed an agreement to acquire 51% of The Laguna Creamery, Inc. for 198 million pesos ($3.6 million)[56]. - MPIC acquired the remaining 61.9% equity of Landco for a total consideration of 429 million pesos (8.2 million USD) on March 31, 2022[175]. Operational Efficiency and Challenges - Operating cash inflow for the first half of 2022 decreased by 4% to $58.9 million, primarily due to a depreciation in the average exchange rate of the peso against the dollar[24]. - The gross profit margin decreased from 33.6% to 30.9%, impacted by rising raw material costs, particularly for wheat flour and cooking oil[27]. - The company is optimistic about the future prospects of its core businesses, including Indofood, PLDT, and MPIC, despite ongoing macroeconomic challenges[25]. Market and Economic Outlook - The outlook for household consumption in Indonesia remains optimistic as the economy improves and travel restrictions ease, with a focus on competitiveness and cost control[38]. - The Singapore government forecasts GDP growth of 3.0% to 5.0% for 2022, indicating a continued upward trend in electricity demand[72]. - The company plans to expand its market presence and invest in new product development to drive future growth[126]. Foreign Exchange and Derivative Losses - The company recorded a foreign exchange and derivative loss of $49.7 million, up from $22.5 million in the previous year[17]. - The company experienced a foreign exchange loss of $621.3 million during the period, compared to a loss of $249.0 million in the previous year, reflecting an increase in losses of approximately 149.0%[124]. Employee and Compensation - The employee count increased to 100,968 as of June 30, 2022, from 100,333 in the previous year[121]. - The company reported a total of $441.1 million in employee compensation for the first half of 2022, slightly down from $442.2 million in the same period of 2021[120]. Sustainability and ESG Initiatives - The company aims to enhance its ESG standards to international levels while pursuing growth in emerging Asian economies[3]. - PLDT is committed to reducing greenhouse gas emissions by 40% by 2030 from a 2019 baseline, integrating sustainability into its operations[49].