F.F.I. Holdings anticipates a modest decline in half-year profit, citing one-off lease expenses despite steady food operations.
- Net profit before tax expected at $2.29 million for H1 2025
- Profit down from $2.61 million in prior corresponding period
- One-off costs linked to securing a new 10-year property lease
- New lease income reduced to $0.938 million per annum from $1.28 million
- Food manufacturing operations remain stable
Profit Guidance Update
F.F.I. Holdings Ltd has provided an updated profit guidance for the half year ended 31 December 2025, revealing an expected net profit before tax of approximately $2.29 million. This figure represents a decline from the $2.61 million reported in the same period last year. The company attributes this reduction primarily to one-off costs associated with securing a new lease on one of its investment properties.
Lease Transition and Financial Impact
The property in question, located in the rapidly developing Cockburn Central industrial area of Western Australia, experienced a vacancy period of about two months after the previous lease expired. The new lease, signed for a 10-year term, starts with an annual income of $0.938 million, down from the previous $1.28 million. While this represents a decrease in rental income, the long-term lease provides stability and predictable cash flow moving forward.
Steady Food Operations
Despite the challenges in the property segment, F.F.I. Holdings’ food manufacturing operations continue to perform satisfactorily. The company’s diverse product range, including chocolate, cake toppings, confectionery, jams, fruit fillings, snack foods, and contract packing, remains a solid pillar supporting overall business performance.
Outlook and Next Steps
The company plans to release its audited financial statements around 19 February 2026, which will provide a clearer picture of its financial health. Investors will be watching closely to see how the one-off lease costs and the new rental income levels affect the company’s longer-term profitability and growth prospects.
Bottom Line?
F.F.I. Holdings’ profit dip highlights the balancing act between property portfolio management and operational stability.
Questions in the middle?
- Will the new lease terms lead to sustained income growth over the next decade?
- How might the company offset reduced property income in future periods?
- What is the outlook for the food manufacturing segment amid market pressures?