Future Generation Australia (FGX) H2 2024 earnings summary

Executive summary

• Total shareholder return reached 20.6% for FY2024, or 23.5% including franking credits, outperforming benchmarks and supported by portfolio gains and a narrowing share price discount to NTA.

• Fully franked full year dividend increased to 7.0 cents per share, yielding 5.5% (grossed-up up to 8.3%).

• Over $5.4 million donated to nonprofits in 2024, with cumulative social investment since inception totaling up to $87.2 million.

• Appointment of the first Chief Investment Officer and launch of new philanthropic initiatives, including Future Generation Women.

• Significant cost savings achieved through pro bono fund manager and service provider support, with cumulative fee savings since inception reaching $152.1 million.

Financial highlights

• Investment portfolio delivered a 13.0% return in FY2024, outperforming the S&P/ASX All Ordinaries Accumulation Index by 1.6% and the Small Ordinaries by 4.6%.

• Operating profit before tax was $62.8 million; after tax, $47.9 million for FY2024.

• Share price rose from $1.105 to $1.26, with the discount to NTA narrowing from 17.1% to as low as 8.63%.

• Profits reserve at year-end was 37.9 cents per share, covering over five years of dividends.

• Since inception, annualized portfolio return is 9.3%, exceeding both major indices.

Outlook and guidance

• Commitment to further narrowing the share price discount to NTA and sustaining future dividends, supported by a strong profits reserve.

• Expectation of further interest rate cuts in Australia, supporting consumer confidence and company earnings.

• Ongoing focus on investment in small-cap companies and unlocking further value.