FIRST PACIFIC(US:FPAFY)2021-08-25 14:54Financial Data and Key Metrics Changes - Recurring profit rose 38% to just under $210 million, with net profit amounting to $181 million compared to $100 million a year earlier, driven by a sharp fall in nonrecurring losses [6][7] - Interest coverage ratio improved to 3.5 times from 3.1 at the end of the previous year [10] - Cash balance stood at $132 million, with gross and net debt remaining relatively unchanged [11] Business Line Data and Key Metrics Changes - Indofood reported a net sales growth of 20% to a record high, with core profit increasing by 37% to just under IDR4 trillion, largely due to the acquisition of Pinehill [14] - ICBP, an 80% subsidiary of Indofood, saw net sales rise by 22% and EBITDA increase by 33%, with core profit rising to around IDR4 trillion [15] - PLDT achieved record high revenues, rising 10% to almost PHP92 billion, with telco core income up 10% to over PHP15 billion [16] Market Data and Key Metrics Changes - Metro Pacific's contribution increased by 11%, driven by toll roads and power, with a forecasted core profit of PHP12 billion for the full year [20] - Meralco's distribution revenues grew faster than GDP growth in the Philippines, focusing on renewable energy for future capacity [21] - Philex's core income nearly tripled due to a significant increase in copper prices, confirming an extended mine life [24] Company Strategy and Development Direction - The company is committed to a three-year $100 million share repurchase program, which will resume following the blackout period [8] - Meralco plans to have renewables account for half of new capacity installations over the next five to seven years [21] - The company is actively discussing refinancing options for upcoming bank loans to improve debt maturity profiles [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for a better year in 2021 compared to 2020, with expectations of continued strong performance from major companies [50] - The outlook for Indofood and PLDT remains positive, with expectations of strong service revenue growth [16][20] - Management noted that the easing of quarantine restrictions has led to increased traffic and business recovery [20] Other Important Information - The company reported an improvement in ESG ratings, moving deeper into the low-risk category [13] - The gross asset value was reported at $4.91 billion, well-balanced among core holdings [12] Q&A Session Summary Question: What is the status of bank loans due next year? - Management confirmed that $300 million in bank loans due in Q1 2022 are being actively refinanced, with over 40% already committed [30] Question: Will there be a rise in the final dividend next year? - Management indicated that if profits rise, there is no reason the payout should not improve next year [40] Question: What is the status of non-strategic asset sales? - Management stated that there are no more non-strategic assets available for sale, as most companies are performing well [38] Question: Can IndoAgri become a member of RSPO again? - Management noted that IndoAgri is a member of ISPO, which is considered a better standard for palm oil producers [44]