The FFI Holdings Ltd (ASX: FFI) share price
closed up 2.5% on Monday after providing ASX investors with better-than-expected profit guidance for the recently concluded financial year.
What Is FFI Holdings?
FFI Holdings is a Western Australian based food company with manufacturing, processing and packing operations covering chocolate, confectionery products and smallgoods.
The company also has investments in prime industrial and commercial real estate.
FFI’s Profit Guidance
Based on the unaudited financial statements FFI’s management have said they expect to see an increase in net profit after tax (NPAT) of approximately 24% compared to the previous financial year.
Management had previously set expectations for an increase of 15% however strong growth in sales in the final quarter helped boost year-end profits.
With a market cap of only $50 million, FFI Holdings is a rare ASX small cap that is both profitable and pays a dividend to investors. The strong growth in net profit may lead to an increased dividend which will be sure to make income hungry investors happy.
FFI Holdings are expected to make a dividend announcement along with the release of their preliminary final report on August 12.
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Disclosure: At the time of publishing, Luke has no financial interest in any companies mentioned.
