Farsons group profits up 75 per cent

The Farsons Group last year saw "a remarkable improvement" in its financial results, Simonds Farsons Cisk plc chairman Bryan A. Gera said yesterday at the company's annual general meeting.

In the year ending January 31, 2003, the group made a consolidated profit after taxation and minority interest of Lm1,038,000, an increase of 75.3 per cent over the profit level achieved the previous year.

A three per cent increase in company turnover was reported, from Lm22.9 million to Lm23.6 million.

Mr Gera noted that though domestic consumer demand had not been particularly robust and tourist arrivals were slightly down, the increase in profit had come from across the whole of the group's activities.

Farsons had taken on the structure of a group of companies in the beer, beverages, food and property management markets, and was well prepared for Malta's accession to the EU, he said.

Mr Gera also referred to the overwhelming response that the Maltese investor had shown to the issue of ordinary shares and to the two bond issues last October, saying it was probably the most successful issue on the Maltese corporate bond market.

Louis A. Farrugia, group chief executive officer, said that during the past year, the group tested its ability to compete in the fully liberalised sectors of the beverage market including bottled water and fruit juices.

"The results so far have been positive and have vindicated the group's belief in the strength of its brands and product quality.

"The uncertainty about the future of our country has been settled and we can now implement the group's strategy to meet the challenges and exploit the opportunities which Malta's accession to the EU presents."

The AGM approved a dividend of 1c8 per ordinary share of 12c5 out of tax-exempt profits.

Max Ganado was elected as the new director on the board replacing Prof. Joseph Ganado who decided not to present his nomination after a 13 -year term as director.