Farsons Group announces €2.2 million profit after tax for mid-2010

The group’s directors explained in their interim directors’ report published this afternoon on the Malta Stock Exchange (MSE) this afternoon by company secretary Arthur Muscat, that this represented an increase of 19% over the same period last year.

In view of this result, the Board of Directors has resolved to distribute, out of tax exempt profits, an interim dividend of € 0.0133 per share on all ordinary shares.

Farsons registered a €2.3 million profit before taxation for the first six months of the financial year ending 31 July 2010 as against €2.0 million for the interim period ending 31 July last year, an increase of €0.3 million or 13% over the same period last year.

The group paid €157,000 in taxes for the first six months of FY 2010-11 ending 31 July 2010, as against €169,000 paid during the six-month period ending 31 July 2011, a slight decrease of €12,000 or €7.1 million for the period.

Moreover, Farsons Group turnover for the period rose to €35 million for the first six months of this year when compared to €33 million registered during the first six months of 2009.

This represented an increase of 5% when compared to the same period last year.

However, during the first six months of the financial year ending 31 July 2010, the group did not register any losses from discontinued operations as against the €30,000 registered during the first six months of the 2009-10 financial year.

The company’s directors explained that these slightly improved results had been “largely influenced” by “increased volumes of beverages destined for the export market and eased sales of beers on the local market principally due to an improved tourist season”.

Moreover, the directors’ highlighted the improved results of the importation of beverages segment, “in particular through the representation of Red Bull”, as well as “ongoing reductions in operating and administrative costs through continuous review of the ways of working”.  

However, Farsons’ directors lamented about “higher utility costs in particular affecting negatively the franchised food business” as well as “impairment of assets within the property segment”.

In their outlook for the next six months of FY 2010-11, the board of directors expressed its confidence that “further opportunities exist for improved profitability levels going forward”.

The interim dividend would be paid on Friday 22 October 2010 to the ordinary shareholders who would be on the register of shareholders as at the close of business on Friday 8 October 2010.

The company explained that this would amount to a total interim net dividend of € 400,000.