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Farsons improves profits, but energy inflation presents challenge
Inflationary pressures from energy costs and increases in the cost of agricultural commodities continue to present challenges for the group,
While group turnover increased by 5% to exceed 70 million, profit before tax exceeded 5 million compared to 4 million in the previous financial year, an increase of 25%.
The Farsons Group has announced a significant improvement in its profit for the financial year ended 31 January 2012.
While group turnover increased by 5% to exceed €70 million, profit before tax exceeded €5 million compared to €4 million in the previous financial year, an increase of 25%.
CEO Norman Aquilina said that despite the increased competitive pressures, the group managed to increase its turnover by over €3 million, partially as a result of an increase in exports' turnover. Nonetheless, increased competition and the rising costs of raw materials eroded margins.
Selling, distribution and administrative cost ratio to turnover reduced marginally, resulting in a stable operating profit compared to the prior year.
The group's earnings before interest, tax, depreciation and amortisation (EBITDA) for the financial year under review exceeded €11 million while the shareholders' funds, at €88 million finance 59.6% of the group's total assets. The gearing ratio, that is, the ratio of debt on the total debt and equity at year end remains strong at 27.22%.
The directors also highlighted the dependence of the group's business on local consumer confidence and the state of the tourism industry. "Inflationary pressures on energy costs and increases in the cost of raw materials and imported products, particularly which are derived from agricultural commodities, continue to present challenges for the group," Aquilina said. "Nevertheless, the board of directors remains confident that the group's robust business model can face these challenges."
Works on the new state of the art €12.5 million investment in a new brewhouse are nearing completion and will be commissioned over the forthcoming summer months.
The directors shall be recommending a total net dividend to the ordinary shareholders of €2.1 million at its Annual General Meeting on 20 June 2012, of which €400,000 has already been paid by way of an interim dividend in November 2011.
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Prosit tassew. PERO xi nghidu ghal mod ta kif qed jigu trattati l-haddiema? Nimpjegaw labourers u xufiera bhala self employed, jithallsu bil-commission bla drittijiet ta xejn? Staqsu lil minn hu mcappas f'dan ic-cirku ta skjavitu tal-2012 ha tkunu tafu!!!
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Prosit tassew. PERO xi nghidu ghal mod ta kif qed jigu trattati l-haddiema? Nimpjegaw labourers u xufiera bhala self employed, jithallsu bil-commission bla drittijiet ta xejn? Staqsu lil minn hu mcappas f'dan ic-cirku ta skjavitu tal-2012 ha tkunu tafu!!!
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Prosit tassew. PERO xi nghidu ghal mod ta kif qed jigu trattati l-haddiema? Nimpjegaw labourers u xufiera bhala self employed, jithallsu bil-commission bla drittijiet ta xejn? Staqsu lil minn hu mcappas f'dan ic-cirku ta skjavitu tal-2012 ha tkunu tafu!!!
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FARSONS shareholders are welcome to their profits, and congratulations are due for the group’s export performance. May their exports grow and multiple and all Malta would rejoice.
However, one of their most important raw materials is water and they get this practically for free. How about this group, other bottlers and heavy industrial users pay for this valuable, limited raw material which they mine from public underground land? They get this valuable resource free, whilst the ordinary consumers pay through the nose. How long will the ordinary consumer accept that these boreholes are non metered and free?
This Government has not raised a finger for 25 years and will do nothing in its’ dying days. I wonder if any proposal supporting the ordinary consumer would crop up in any of the forthcoming electoral manifestos. Also, what about the unions? They are so vigilant with workers rights. What have they got to say? After all aren’t ordinary consumers’ workers as well?
Anyway, can any expert explain to me how foreign sourced, water based, similar consumer products cost less; especially when one factors in the fact that the foreign producers pay for the raw material (water). And the surely heavy cost of transport of these products to Malta from the mainland.
