Farsons Group increases profitability by €2 million in 2009, reaching €10.2 million

Addressing shareholders during the company’s 63 rd annual general meeting, Norman Aquilina, who will be appointed Farsons Chief Executive on 1 July 2010 explained how the Group’s Earnings before interest, tax, depreciation and amortization (EBITDA) was “the highest in the past five years”.

In fact, the Group registered an improvement of more than €2 million over the previous financial year (2008) and reaching €10.2 million, Aquilina told shareholders.

Furthermore, the Group’s gearing ratio, that is, the ratio of debt on equity and debt at the year end, stood at 31.4% at the end of FY 2009. This was also an improvement over the previous year’s 34.8% and the lowest in the last five years, the Farsons CEO-designate added.

During his overview of 2009, Aquilina explained that Farsons’ export sales almost doubled and reached record levels in terms of volume and profitability.

Farsons was now exporting to 12 countries in Europe, North America, North Africa and Australia, while Cisk Lager was now also available in China.

“With determination, professionalism and courage, during 2010 we will further refine our business model to make it even more dynamic and resilient, and further increase Farsons Group’s profitability,” Aquilina concluded.

On his part, Louis A Farrugia, making his last address as Group CEO, updated shareholders on the latest developments.  Farrugia announced that an agreement for the Brewhouse equipment had just been signed with Krones AG, the leading company in this sector.

Construction was expected to commence in July 2010 while planned completion was in 2012, Farrugia added.

Farrugia described the recent €15 million 2017-2020 6% unsecured bond offer, which was closed within minutes due to oversubscription, as “a clear signal of the support which Farsons continues to enjoy and a vote of confidence in our brands and future prospects.”

Although relinquishing responsibilities for the day-to-day running of the Group, Farrugia will continue in an oversight role and take an active part in determining the Group’s strategies.

He will continue in his role as chairman of the Group Executive Board, while Bryan A Gera will retain his position as Chairman of the Board of Directors.

Farrugia would also remain responsible for the new €14 million Brewhouse project.

Addressed the shareholders, Gera thanked Farrugia for his 31 year service as Farsons’ Group Chief Executive.  He explained how the Group’s turnover reached €65.1 million during the last financial year. Group profit before tax amounted to €3.2 million. 

The Annual General Meeting also approved the Board’s recommendation of a final dividend of €1,500,000.  An interim dividend of €300,000 had already been paid in October 2009.

During an Extraordinary General Meeting, held immediately after the Annual General Meeting, a number of proposed amendments to Memorandum and Articles of Association were also approved.