MFF Capital Investments (MFF) H1 2025 earnings summary

Executive summary

• Net profit after tax for the half year ended 31 December 2024 was $381.5 million, up 161% year-over-year, reflecting strong mark-to-market gains in the investment portfolio.

• Net assets increased to $2,423.6 million from $2,071.0 million at 30 June 2024, driven by portfolio appreciation and compounding unrealised gains.

• Fully franked interim dividend of 8.0 cents per share declared, up from 6.0 cents per share in the prior year, with payment scheduled for 14 May 2025.

• The company maintains a concentrated portfolio in high-quality global equities, with Amazon, Mastercard, Visa, and American Express as top holdings.

Financial highlights

• Total net investment income rose 146% to $551.8 million compared to $224.0 million in the prior corresponding period.

• Profit before income tax was $544.9 million, up 161% from $208.5 million year-over-year.

• Basic earnings per share increased to 65.72 cents from 25.24 cents year-over-year.

• Net cash from operating activities was $151.0 million, up from $78.4 million in the prior period.

• No on-market share buybacks occurred during the period.

Outlook and guidance

• The company refrains from providing detailed forward-looking statements due to market and currency volatility but expresses optimism for long-term compound growth.

• Directors intend to propose a fully franked final dividend of 8.0 cents per share for the year ending 30 June 2025, subject to considerations.

• Acquisition of Montaka Global Investments expected to complete in February 2025, with no material immediate financial impact.