Innovation, exports are key to Farsons’ growth

Farsons’s drive for sustainable profitable growth will continue to be based on innovation and exports, group chief executive Norman Aqui­lina told The Sunday Times of Malta last week, after the Cisk and Kinnie maker reported record pre-tax profits of €6.48 million to January 31.

The group continues to reduce headcount, while increasing output

Mr Aquilina emphasised that the group must continue to strengthen its competitive edge without losing sight of other opportunities for organic growth and through the representation of new brands.

Profits soared 28 per cent in the last financial year as group turnover surpassed €77 million. All business units, including the manufacture and importation of food and beverages, the Pizza Hut, Burger King and KFC operations, and the property segment, registered improved turnover and profitability. Gross profit rose10 per cent to a record €28 million, while selling, distribution and administrative costs were contained at 26 per cent of turnover.

“Delivering year-on-year profitable growth is not a coincidence,” Mr Aquilina said. “This is the result of a clear, pragmatic strategy, a well-planned investment programme, and improved efficiency across our group’s business.

“There is much more that needs to be done, but we are now in a better position to perform more effectively and achieve our annual projections, without losing focus of the longer term strategic objectives.”

Exports continued to grow year on year in Italy and the Far East, while sales to North Africa were sustained and some inroads were made in various new markets in eastern Europe. Now the group is examining strategies to build on these achievements and to tap significant growth potential of specific markets, Mr Aquilina added.

He pointed out that with more streamlined operations across the group, Farsons will pursue its drive to heighten efficiencies and productivity. He was particularly satisfied with the quality, commitment and results achieved from the efforts of the management team and staff.

“We have achieved a management mindset focused on three driving principles,” he continued. “Firstly, being strategic and inform­ed; secondly, being ambitious and challenging, and thirdly, being dynamic and results-driven. The group continues to reduce headcount, while increasing output. Flexible working time and skills are the backbone of new and innovative collective agreements.”

The €12.5 million brewhouse in­augurated last September to seal a €40 million investment programme, has brought about the need for a flexible, better trained and multi-skilled team. Mr Aquilina said the facility brought significant potential and has already presented the group with opportunities to showcase capabilities, strengthen competitiveness, heighten quality, and develop new products.

Meanwhile, “important progress” has been achieved on the group’s energy efficiency and environmental improvement roadmap. Four energy-saving projects involving an outlay of €3 million envisage the installation of PV panels, new refrigeration and water treatment plants and investments in a beer recovery and processing plant.

The Farsons Beverage Imports Company saw higher sales of represented brands, particularly after the portfolio was consolidated with offerings from the Campari Group, Pernod Ricard and Britvic, alongside major names like Red Bull.

Quintano Foods’ turnover rose but profit fell due to growing competition. Burger King, KFC and Pizza Hut reaped the operating results and profitability from the added management focus announced last year. Operations in the 11 restaurants will be consolidated and new growth opportunities will be sought, he said.