Highlights

• FFI Holdings lifted FY2025 profit after tax to $6,663,711 from $1,737,747, helped by a $5,193,269 property revaluation gain.

• Underlying profit before tax, excluding revaluation, rose 9% to $4,327,009, while food operations profit before tax rose 20.4%.

• Cocoa price volatility pushed inventories up 86% to $18.25 million and left operating cash flow negative $5,277,152.

• Total dividends reached 22.5 cents per share, up from 12.5 cents, and the board planned a new $5.1 million factory.

Cocoa prices swung hard enough in the year to 30 June 2025 to swell the inventories of F.F.I. Holdings Limited (ASX:FFI) by 86%, and the Western Australian chocolate and bakery-ingredient maker paid for it in cash flow. The company's annual report for the year to 30 June 2025 showed profit climbing even as operating cash flow turned negative. Shares were trading at A$4.89 on 23 October 2026, up 3.38%.

Profit Up, Cash Down

Profit after tax reached $6,663,711, up from $1,737,747. Total revenue was $63,653,388, including a $5,193,269 property revaluation gain. Revenue from continuing operations was $58,460,119, made up of $56,752,710 in sales of goods and $1,683,622 in rent, which rose 4.0%.

Stripping out the revaluation, underlying profit before tax rose 9% to $4,327,009. The food operations, which trade as Fresh Food Industries, lifted profit before tax 20.4% to $3.80 million. Earnings per share were 61.4 cents, against 16.1 cents.

Cash told a different story. Inventories rose to $18.25 million, mainly because of cocoa price volatility, and operating cash flow was negative $5,277,152. The company ended the year with a bank overdraft of $659,087 and current borrowings of $4,000,000. A rights issue raised $7.2 million, taking contributed equity to $28.0 million.

Dividends and Balance Sheet

Directors set total ordinary dividends for the year at 22.5 cents per share, fully franked, up from 12.5 cents. That comprised a 10.0 cent interim and a 12.5 cent final, with the final payable on 30 October 2025.

Net assets rose 33.3% to $59,533,803 and net tangible asset backing increased to $4.50 per share from $4.09. Investment property, valued at $31.5 million, accounts for 52.9% of net assets. A revaluation of the main food site added $3.6 million, recorded in reserves.

Two Pillars: Food and Property

FFI describes its business as two pillars. One is food manufacturing, covering chocolate, confectionery, bakery fillings and home-cooking products. The other is industrial property investment in Cockburn Central.

On 2 September 2025, after the balance date, a property lease was renewed for 10 years with a Western Australian Government agency. The renewal carries income of $0.938 million a year and one-off costs of about $0.38 million, and it is expected to leave the property valuation unchanged. Brett Matthews became chief executive on 1 April 2025, when Geoffrey Nicholson moved from managing director to non-executive director.

Plans and Risks Flagged by the Board

Directors planned a factory and warehouse of about 4,000 square metres at a cost of about $5.1 million, with construction expected to start in FY2026. They also expected cocoa costs to normalise during FY2026, which they said should lift operating cash flow. The report named high Australian manufacturing costs relative to overseas competitors as the main material risk.

The latest annual report available for review covers FY2025, so progress on these plans during FY2026 is not reflected here.