Financial Data and Key Metrics Changes - The company reported a record high recurring profit of 0.19, reflecting a consistent policy of 25% payout of recurring profit [7] - Gross debt remained stable year-over-year, with an improved interest coverage ratio of 3.8 times [8][9] Business Line Data and Key Metrics Changes - Indofood achieved record high net sales, up by more than 20%, driven by the consumer branded products division, including contributions from Pinehill [15] - PLDT's service revenues reached a record high, with Telco core profit increasing by 8% to over 30 billion pesos, primarily driven by the home business [19] - MPIC's toll roads business saw a significant increase in contribution as travel restrictions eased, while the water business faced challenges due to COVID-related restrictions [24] Market Data and Key Metrics Changes - Philex Mining's core profit doubled to a 10-year high, benefiting from strong copper prices [27] - Pacific Light Power (PLP) reported a tenfold increase in EBITDA to over SGD 100 million, indicating a strong turnaround in performance [25] Company Strategy and Development Direction - The company is focusing on capital management, including a share repurchase program and maintaining a consistent dividend payout policy [7][10] - Future investments are expected to be directed towards renewable energy and FinTech, aligning with industry trends [26] - The company anticipates continued improvement in the performance of its main operating companies, driven by strong cash flows and a solid balance sheet [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2022, expecting better performance compared to 2021 based on early indicators [65] - The company is confident in the growth potential of its core holdings, particularly Indofood, PLDT, and MPIC, as they adapt to changing market conditions [29] Other Important Information - The company plans to publish its 2021 ESG report in late April to mid-May, highlighting its commitment to sustainability [12] - The company is exploring opportunities for solar energy imports from Indonesia, which could enhance its renewable energy portfolio [43][45] Q&A Session Summary Question: Will there be a change in capital deployment strategy? - Management indicated that capital allocation will primarily focus on shareholder returns, including dividends and share buybacks, with potential for debt reduction and acquisitions depending on cash flow from operating units [32][35] Question: How is Indofood managing raw material costs? - Indofood does not hedge on futures markets for soft commodities but has raised wheat flour prices by about 8% in response to higher costs, which generally boosts profitability [41] Question: What is the status of the solar import project? - A pilot project for importing solar energy from Indonesia has been granted a conditional license, with potential for scaling beyond 100 megawatts depending on future bids [43][45] Question: What is the pace of share buybacks going forward? - The share buyback program is set at 28 million already spent, suggesting an average of $30 million per year [63]
FIRST PACIFIC(FPAFY) - 2021 Q4 - Earnings Call Transcript