Recently, First Pacific (00142.HK) announced the performance of its three major operating companies Indofood, PLDT, and MPIC for the nine months ended September 30, 2024. In the first three quarters of this year, both revenue and core profits continued to grow.

For the nine months ended September 30, 2024, Indofood in Indonesia achieved a comprehensive sales net amount of 86.94 trillion Indonesian Rupiah, a 4% year-on-year increase; revenue was 16.09 trillion Indonesian Rupiah, a 13% year-on-year growth; core profit was 8.3 trillion Indonesian Rupiah, a 17% year-on-year increase.

During the same period, PLDT in the Philippines saw a 2% increase in comprehensive service revenue to 144.9 billion pesos; data/broadband business grew by 3% to 120.4 billion pesos, accounting for 83% of service revenue; comprehensive EBITDA rose by 3% to 80.7 billion pesos, with an EBITDA margin of 52%. Moving forward, personal services, fiber, home, enterprise data/news and communication technology, as well as various business segments all saw revenue growth.

In the Philippines, MPIC achieved revenue of 53.761 billion pesos during the same period, a growth of over 20%; gross profit of 35.318 billion pesos, a nearly 25% increase; attributable net income of 23.133 billion pesos for the parent company, a significant 44% rise. MPIC's strong financial and operational performance across various business segments continued, mainly driven by Meralco's strong energy sales growth, Maynilad Water's increased water volume sales, as well as highway toll traffic growth and rate adjustments, resulting in an operating profit contribution of 24.3 billion pesos, a 21% increase. Its core profit rose by 28% to 20.8 billion pesos.

First Pacific expects that the favorable pricing environment for soft commodities and the strong purchasing power in the Indofood business market will further boost its business. Continuous improvement in customer experience and cost efficiency will help PLDT achieve its guidance of over 35 billion pesos in core telecom profits for the full year. With the support of growing demand from customers in its electrical utilities, toll roads, and water affairs business, MPIC's profit growth is expected to reach new heights. First Pacific expects continued growth in annual revenue (in local currency), operating profit contributions from operations, and recurring profits.

Note: This research article is a paid service.