FFI Holdings Limited reported a remarkable 283.5% jump in net profit for FY2025, driven by property revaluations and operational growth, while raising $7.2 million to fund expansion in food manufacturing and property development.
- Net profit after tax up 283.5% to $6.66 million
- Revenue increased 10.2% to $58.46 million
- $5.19 million unrealized gain from investment property revaluation
- Completed $7.2 million rights issue to fund growth
- Final fully franked dividend maintained at 12.5 cents per share
Strong Financial Performance
FFI Holdings Limited has delivered a standout financial year ending 30 June 2025, with net profit after tax soaring 283.5% to $6.66 million on the back of a 10.2% rise in revenue to $58.46 million. This surge was significantly bolstered by a $5.19 million unrealized gain from the revaluation of its investment properties, reflecting robust demand in Western Australia's industrial real estate market.
Excluding this property revaluation, the company’s underlying profit still improved by a solid 9%, underscoring operational strength in its core food manufacturing business.
Food Operations Amid Cocoa Market Volatility
The food division posted a 20.4% increase in profit before tax to $3.8 million, supported by a 10.6% rise in sales revenue to $56.8 million. This growth is notable given the extreme volatility in cocoa prices and supply chain disruptions that pressured margins and cash flow during the year. Management anticipates a return to more stable inventory costs and improved cash flow in the coming year.
Property Investment and Development Plans
FFI’s property portfolio, comprising five prime industrial lots in the rapidly developing Cockburn area near Perth, saw rental income increase 4% to $1.68 million. The portfolio’s valuation jumped nearly 20% to $31.5 million, driven by strong market demand. The company plans to commence a $5.1 million factory and warehouse development on these sites in FY2026, funded by capital raised from a recent $7.2 million rights issue.
Capital Raising and Balance Sheet Strength
The successful rights issue expanded contributed equity to $28 million, positioning FFI to pursue growth opportunities across its food and property divisions. The company’s net assets rose 33.3% to $59.5 million, with net tangible assets per share increasing to $4.50, reflecting both operational gains and asset revaluations. Debt levels remain low, and the company is comfortably within banking covenants.
Leadership Transition and Dividend Policy
FFI also announced a smooth executive transition, appointing Brett Matthews as CEO effective April 2025, while former Managing Director Geoffrey Nicholson moved to a Non-Executive Director role. The board declared a final fully franked dividend of 12.5 cents per share, maintaining dividend levels despite the expanded share base, signaling confidence in the company’s financial health and future prospects.
Looking ahead, FFI Holdings remains focused on sustainable long-term value creation through its dual pillars of food manufacturing and property investment, supported by a refreshed management team and strengthened capital base.
Bottom Line?
FFI’s robust profit growth and strategic capital raise set the stage for accelerated expansion, but cocoa market volatility remains a watchpoint.
Questions in the middle?
- How will cocoa price fluctuations impact margins and cash flow in FY2026?
- What is the timeline and expected return on the new factory and warehouse development?
- How will the new CEO’s leadership influence operational and strategic priorities?