Farsons reports 14% increase in post-tax profits

Farsons Group reported a steady growth and a profitable performance for the six months ending 31 July 2015, when compared to the same period of last year.

Whilst turnover exceeded €44 million, representing an increase of 8% over the comparative period last year, profit for the period from continuing operations after taxation amounted to €4.6 million, a significant increase of 14% over last year’s already record figure.

In reviewing the performance of the Group’s business, Farsons Group Chief Executive Mr Norman Aquilina said: “The market remains highly competitive, with constant pressures on volumes and margins. Nonetheless, the beverage business and the franchised food operations in particular continued to deliver a resilient performance”.

He further stated that “while efficiency improvements through investment, technology, innovation and cost containment remain ongoing, exports growth will continue to be an area of focus in line with the group’s strategic vision”.

The strong performance of the local economy, the growth in tourist arrivals and expenditure, the successful marketing of the beer portfolio and the volume growth in imported beverages were all factors that also contributed to the positive results achieved during the first six months of the company’s financial year.

On the investment side, while construction works on the new state-of-the-art beer packaging facility continues to progress on schedule and on budget, the company also announced plans to expand its logistics operations and warehousing capabilities, alongside a new office space development to house its administrative employees.

This investment, together with related capital expenditure, is expected to amount to €10 million and is scheduled to commence in January 2016 and completed within a two-year period.

Grupo chairman Louis A. Farrugia referred to the company announcement issued on 29 May 2015, where it was stated that planning applications for the development of the Farsons Business Park were submitted to MEPA.

“Further detailed designs, analysis and specifications have since been undertaken with the project being set for approval by the next annual general meeting. The board is also considering the various funding options and effectively planning the execution of the restructuring of the group. We are experiencing another exciting phase in our history which we believe will result in further growth of the Farsons group”.

The board of directors also recommended an interim dividend of €1 million, similar to last year, and equivalent to €0.0333 per share. Such dividend will be paid out of tax exempt profits, payable on 20 October to those registered ordinary shareholders as at 6 October 2015.