Washington H Soul Pattinson & Company Ltd (ASX:SOL) has reported a 27.8% fall in group statutory net profit – to $498.8 million – during the 2024 fiscal year, with this largely being caused by ‘lower contributions’ from the Brickworks and New Hope businesses during this period.
The conglomerate often known as Soul Patts – which also runs TPG Telecom and Pengana Capital – said its total dividend for FY2024 was up 9.2% at 95cps (cents per share), from 87 cps in the prior corresponding period.
Managing director and CEO Todd Barlow said the company had successfully ticked off three key goals: increasing cash generation, growing its portfolio and managing investment risk, during FY2024.
“Our strategy of long-term commitment to building value, strength in conviction when making investment decisions, and unconstrained mandate to invest where we can extract the highest quality returns, continues to deliver for our shareholders,” he said.
Soul Patts’ net cash flow was up 10.3% to $468 million, as a result of growing cash generation from private equity, emerging companies and credit portfolios within the conglomerate’s umbrella.
Meanwhile, Brickworks Ltd (ASX:BKW) said its statutory profit in the 2024 fiscal year had slumped 130% to a loss of $119 million, mainly influenced by property sales and non-cash property revaluations, with these registering a loss of $231 million during the year.
Also significant was the impact of non-cash building products, which fell by $135 million (post-tax) during FY2024.
The company’s full year dividend was 67 cents fully franked, up 3%.
Chairman Robert Milner said economic headwinds around the world were having an impact on Brickworks’ bottom line.
“The significant property devaluation was reported in the first half, and reflects capitalisation rate expansion across the industry, in response to higher interest rates,” he said.
“Pleasingly, conditions have stabilised across the property industry over the past six months, as many central banks around the world begin to pivot towards expansionary monetary policy.
“The Building Products impairment was recorded in the second half, and primarily relates to Austral Masonry and Brickworks North America. Both of these businesses have been impacted over the past six months by a deterioration in building activity across key markets.”
It appears that Brickworks’ results were not as problematic to investors as they appeared on the surface, with the company’s stock rising on Thursday. At 13:45 AEST, Brickworks shares were trading at $28.61 – a rise of 7.56% since the market opened, while Washington H Soul Pattinson & Company was $34.20 – a rise of 0.68%.
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