FIRST PACIFIC(HK:00142)2023-04-27 10:23Investment Strategy and Interests - First Pacific Company Limited holds economic interests of 50.1% in Indofood, 25.6% in PLDT, and 46.1% in MPIC as of March 30, 2023[7]. - The company aims to invest in rapidly growing Asian emerging economies, focusing on consumer food, telecommunications, infrastructure, and natural resources[4]. - First Pacific's investment strategy includes targeting assets with strong growth potential and significant cash flow capabilities[4]. - The company has a 68.7% economic interest in FPM Power, 31.2% in Philex, 35.7% in PXP, and 80.9% in FP Natural Resources[7]. - First Pacific's investments are primarily located in the Asia-Pacific region, with a focus on companies that hold a strong or dominant market position in their respective industries[4]. Financial Performance - Revenue for 2022 reached $10,304.9 million, an increase from $9,103.2 million in 2021, representing a growth of 13.2%[11]. - Net profit for the year was $1,049.6 million, up from $895.7 million in 2021, indicating a growth of 17.2%[11]. - Profit attributable to equity holders was $391.6 million, compared to $333.3 million in 2021, reflecting a 17.4% increase[11]. - Operating cash flow for the year was $366.95 million, slightly down from $379.22 million in 2021[11]. - The gross profit margin for 2022 was 29.66%, a decrease from 31.07% in 2021[11]. - The return on average equity was 15.43%, up from 13.25% in 2021, showing an improvement of 16.5%[11]. - The total assets amounted to $600.98 million, down from $620.85 million in 2021[11]. - The current ratio remained stable at 1.26, consistent with the previous year's ratio[11]. - The debt-to-equity ratio was 0.82, an increase from 0.74 in 2021, indicating a rise in leverage[11]. Shareholder Returns and Dividends - First Pacific is committed to enhancing shareholder returns through dividends and share price appreciation[3]. - The dividend payout ratio was 23.46%, compared to 24.53% in 2021, indicating a slight decrease in the proportion of earnings distributed as dividends[11]. - The company plans to distribute $119.4 million, which is 24% of regular profit[23]. - The company announced a final dividend of HKD 0.115 per share, a 16% increase from the previous year, totaling $119.4 million for the year[35]. Operational Highlights - The company is actively involved in various sectors, including power generation, mining, and agriculture, to diversify its investment portfolio[7]. - The number of employees increased to 101,203 from 100,120 in 2021[12]. - First Pacific's subsidiaries include Indofood, the largest vertically integrated food company in Indonesia, and PLDT, the leading telecommunications provider in the Philippines[7]. Market and Economic Outlook - Despite global uncertainties, Indofood expects continued growth in Indonesia's GDP in 2023, supporting overall sales growth[62]. - The company anticipates continued strong economic growth in its operational markets, with management well-prepared to meet customer needs and shareholder expectations[143]. Corporate Governance and Sustainability - The company aims to improve its reporting and governance standards to meet international benchmarks[4]. - First Pacific emphasizes sustainable long-term returns by considering environmental, social, and governance factors in its investment decisions[3]. - The company has established a corporate governance committee primarily composed of independent non-executive directors to oversee governance practices[181]. - The company has implemented a whistleblowing policy to assist employees and business partners in reporting suspected misconduct[185]. - The company is committed to creating a collaborative and creative environment to enhance long-term sustainable performance for shareholders[183]. Corporate Social Responsibility - First Pacific raised over 50 million PHP (approximately 900,000 USD) for immediate financial and material assistance to affected areas in response to Typhoon Odette in December 2021[170]. - The company emphasizes environmental protection through sustainable reforestation and community engagement initiatives[167]. - The company is committed to improving community welfare through education and health initiatives[167]. - First Pacific's commitment to sustainability and corporate social responsibility is reflected in its long-term plans to improve local livelihoods and education levels[2332]. Employee Engagement and Diversity - Employee gender diversity shows a balanced ratio, with females making up 51% and males 49% as of December 31, 2022[198]. - The board has established a gender diversity target of at least 20% female representation[195]. - The company emphasizes a culture of inclusion and regularly reviews its corporate culture to ensure alignment with its values and strategies[196].