# FFI - FFI Holdings



## System (27 March 2015)

FFI Holdings Limited (FFI) engages in the processing, manufacture, packaging and distribution of food products for the Australian industrial, wholesale and retail markets. The food operations are based entirely in Australia and are marketed under four brands which are: Chocolate Products of Australia, Prepact, Fresh Food Industries and Tradition Smallgoods. In addition, The Company also engages in the development and sale of land held for investment purposes.

http://www.ffiholdings.com.au


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## galumay (20 September 2020)

Another super illiquid micro cap that has been on my radar for a while and that i have finally taken a small position in. A boring little business, long term profitable, not much growth, an unlocked potential catalyst in the future is the not insignificant land holdings. I think of FFI as a cupcake REIT!


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## Trav. (20 September 2020)

Looks nice @galumay I can see that the liquidity is an issue but glad you were able to get in.



Market Index


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## galumay (20 September 2020)

Cheers Trav, it will probably be another 5 years before anyone posts in this thread again, so we have that!


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## galumay (12 February 2021)

FFI just posted their H1 results, as expected a solid result, earnings increased, dividend up. Just a good little boring cake maker/REIT.


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## Dona Ferentes (12 February 2021)

Nice one.... I saw REIT and usually run away.... but then, discovered it has NO DEBT. ✅


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## galumay (12 February 2021)

Its interesting that when I turn rocks over looking at these tiny, boring business, overlooked, low/no debt, illiquid companies - it often turns out they are carrying significant property assets, often at very conservative valuations, sometimes with large development potential or strong income streams. Its one of the bonuses of hunting in this unpopular space!


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## galumay (19 April 2021)

My little cake making RIET, FFI has announced final compensation for land the WA Government compulsorily acquired from them. Will add about $1.6m to EBIT.


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## divs4ever (30 July 2021)

F.F.I. Holdings Ltd. (the Company) is pleased to provide the following profit guidance for the
year ended 30th June 2021.
Based on unaudited financial statements and other management information, the Company
expects to report a net profit before tax of approximately $11.58 million for the full year.
The forecast net profit before tax includes income relating to the compensation received from
Main Roads of Western Australia of $6.89 million for the compulsory acquisition of part of the
Company’s land holdings. Details of the compensation received were previously announced to
the market on 21st June 2021.
Excluding the financial impact of the compensation and compulsory acquisition process, net
profit before tax from the Company’s continuing operations is expected to be $4.69 million. This
represents an increase of 16.0% compared with profit calculated on the same basis in the previous
year (and excluding gains on revaluation of investment properties in the previous year).
The Directors have not revalued the Company’s investment properties as at 30th June 2021.
About F.F.I. Holdings Ltd.


=========================================================

 DYOR

 i hold FFI


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## galumay (31 July 2021)

Typically brief and concise announcement from FFI, this little choc cookie REIT just get on with the job, no waffle about bull**** earnings like EBITDA, revenue multiples, etc. I also hold.


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## divs4ever (31 July 2021)

if the market goes south big time  this will be on my top-up ( low priority , sure ,   but ON it  , unlike several 'blue-chips ' )


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## galumay (8 October 2021)

Someone wants in @divs4ever! Up over 20% today on no news. Between FFI and KOV the needle was really moved on my portfolio today!


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## galumay (2 March 2022)

Its been a tough half for my little cookie maker/REIT, they will survive and thrive, but Covid has not been kind, nor the supply disruptions. FCF remained strong, divvy cut a small amount. I do love their no nonsense reports, no EBITDA or other bull**** earnings so many others carry on about. Simple, clean financials.


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## divs4ever (2 March 2022)

the share price has held up  ( so far ) reasonably well 

 that is a little disappointing ( i fully participate in the DRP ) so will miss out on the compensatory edge  that way


 The Company’s Dividend Reinvestment Plan (DRP) has been suspended and will not be in operation for the interim dividend payable on 25 March 2022. There is no foreign sourced dividend.

 wouldn't be so bad  but there aren't many good places to park that surplus cash


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## The Triangle (24 March 2022)

galumay said:


> Its been a tough half for my little cookie maker/REIT, they will survive and thrive, but Covid has not been kind, nor the supply disruptions. FCF remained strong, divvy cut a small amount. I do love their no nonsense reports, no EBITDA or other bull**** earnings so many others carry on about. Simple, clean financials.
> View attachment 138437



Forget about the cakes and chocolates.  $600,000 of rent on $20,000,000 worth of property over 6 months sounds pretty good to me.    I couldn't quickly figure out exactly which properties they owned, but they are around Cockburn station in WA.  Not a bad location and I think there is a very good chance this will only go up in value over time given the proximity to the highways.   Not a bad looking company (but not cheap in my opinion)


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## divs4ever (24 March 2022)

yes there are a few ASX listed stocks  that have profitable property investments

 bought the first parcel in March 2011 ( @ $4.25 ) a second parcel in June 2015 ( @ $3.45 )

 now investors should  check out if the 5%  discount on the DRP  is attractive to them  ( i fully participate in the DRP )

 ( when it is active )


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## divs4ever (7 June 2022)

PROFIT GUIDANCE FOR THE YEAR ENDING 30th JUNE 2022
F.F.I. Holdings Ltd. (the Company) wishes to advise that based on unaudited draft
financial reports and other management information, the Company expects to report a net
profit before tax of approximately $1.80 million for the full year ended 30th June 2022.
The net profit before tax for the previous corresponding year, after excluding the income
relating to compensation received from the Main Roads of Western Australia, was $4.69
million.
The year has proven to be an extremely difficult trading period for the Company, with
significant increases in many of the Company’s major input costs, including raw
materials, freight and labour. The expected profit result has also been negatively
impacted by problems with raw materials and inventory recoveries and supply chain
disruptions during the year.
The Company’s management team is continuing to work with customers and suppliers to
restore profit margins while improvements to internal processes and controls are expected
to improve raw material recoveries in the future.


=========================================================


i hold FFI

 well above my 'top-up' target currently  

 no mention of a div.  ( so will assume there will be none until informed otherwise )

 take care 

 ( am nicely up on this currently  , but that could change even tomorrow )


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## galumay (8 June 2022)

Yup, tough year for our little cookie/REIT.


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## divs4ever (8 June 2022)

i expect it to become tougher , but that might also bring down the SP to ( my )  'top-up level ' 

 will be watching for a glint of a silver-lining  ( i also participate in the DRP so there is some chance i will benefit from the lower price there long-term as well )


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## divs4ever (9 August 2022)

PURCHASE OF INDUSTRIAL LAND UPDATE

FFI Holdings Limited (the “Company”) provides the following update regarding the previously announced plans to purchase a 4.5-hectare vacant industrial site at Forrestdale in Perth, Western Australia.
 The property was being acquired to provide for the expansion of the Company’s existing and long-term future manufacturing requirements and the purchase was conditional upon the Company completing a due diligence process. The Company has now completed the due diligence process and has decided not to proceed with the acquisition. 
Accordingly, the contract to purchase the land has been terminated. The Company will continue to pursue other opportunities to acquire a suitable industrial property to provide for its future requirements.


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i hold FFI

well above my 'top-up' target currently

???

 failed DD on a property  ( in your hometown ) ?? ( you would have thought all that would have been sorted before putting in an offer )

 worried  about more future government resumptions , or did they need soil tests ( considering they were going to manufacture food-stuffs in the completed factory )


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## galumay (9 August 2022)

Not enough info to speculate on why the deal failed their DD. Pretty difficult to finalise DD prior to offer in current market, you would likely not get an offer in if your completed DD prior. Given the long history of disciplined capital allocation its not something I am losing any sleep over!


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## divs4ever (9 August 2022)

just seems strange to me for a business with a long history of operating in that area  ( not as though they are junior explorers trying out a new country )

 i won't lose sleep either , but could be a signal  of something unusual  happening in WA ( remember they had the issue of compulsory acquisition   of land  not that long back )

 ( i hold several WA based companies )


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## divs4ever (19 August 2022)

PROFIT GUIDANCE
FOR THE YEAR ENDED 30th JUNE 2022
F.F.I. Holdings Ltd. (the Company) wishes to provide the following profit guidance
update. Based on unaudited draft financial reports, the Company expects to report a net
profit before tax of approximately $1.60 million for the year ended 30th June 2022.
The updated earnings guidance is lower than the previous net profit before tax guidance
of $1.80 million provided on 7 June 2022, reflecting ongoing difficult trading conditions.
The Company has been impacted by significant increases in many of its major input
costs, including raw materials, freight and labour during the year. The expected result has
also been affected by problems with raw materials and inventory recoveries and supply
chain disruptions.
The Company’s management team is continuing to work with customers and suppliers to
restore profit margins while improvements to internal processes and controls are expected
to increase raw material recoveries in the future.


=========================================================

DYOR

i hold FFI

well above my 'top-up' target currently


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## galumay (30 August 2022)

Full year continued the very difficult business conditions for FFI, now no final divvy this year and a huge drop in profit. I am comfortable they will weather the storm and there will be a reversion to mean in business conditions. Just have to be patient. Once again, a lovely, clean report, no photos no bull**** earnings, just the financials and some brief commentary.


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## The Triangle (6 December 2022)

FFI sitting around $4/share puts the MC roughly equal to net assets at $43/44 million.

I'm still interested but don't think it's worth the risk right now to enter at book value when they have not yet confirmed that they've been able to pass along cost increases to customers and return to decent profitability.   AGM presentation was pretty limited, but the SP climbed after the AGM last month so maybe something positive was said in the actual meeting.    

Inventory levels crept up pretty high but most of it is for raw ingredients (which I presume hold their value just fine) but the 'finished' goods are also up a fair bit and I'm surprised the value is that high for some jams and cakes which wouldn't last very long and may need to be discounted to be moved.   In 2019 finished goods were only $1.3 million vs $3.6 million 3 years later - the have explained this as supply chain issues - which given all the covid mess and WA's fortress mentality - is reasonable.   If I see good cashflow and inventory drop in the half yearly then I'll probably consider buying shares, but otherwise I'll stay on the sidelines.


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## divs4ever (6 December 2022)

is currently  a few cents below my average buying price 

 the icing on the cake ( for me ) is the discount on the DRP

 not very exciting ( most of the time )  sits in that bottom drawer growing a little and giving out franking credits

 about $3.50  would tempt me to add a few more  ( just a nibble  , though )


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