Farsons has announced an after tax profit of €4.6 million for the six months ended July 31, exceeding last year’s record by 14 per cent. The company’s interim results show that turnover exceeded €44 million, an increase of eight per cent over last year. Operating profit increased by €592,000.
The company said a number of factors that contributed to the positive results, namely the buoyant performance of the economy, further growth in tourist arrivals and expenditure, the successful marketing of the company’s beer portfolio, a volume growth in imported beverages and an improved performance from the franchised food business.
The market in which the group operates remains highly competitive with constant pressures on volumes and margins, Farsons CEO Norman Aquilina said. “Efficiency improvements through investment, technology, innovation and cost containment remain ongoing while export growth will continue to be an area of focus in line with the group’s strategic vision.”
The market remains highly competitive with constant pressures on volumes and margins
Farsons said that while construction on the new state-of-the-art beer packaging facility continued to progress on schedule and on budget, the company also 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 the project is scheduled to start in January and to be completed within two years.
Group chairman Louis Farrugia said that further detailed designs, analysis and specifications for the development of a Farsons Business Park have been undertaken since the planning applications for this venture were submitted to Mepa earlier in the year.
The project, he said, is set to be approved by the company’s next annual general meeting.
Mr Farrugia said funding options and details of the spin-off are currently being analysed by the board of directors.
The directors are recommending an interim dividend of €1 million, similar to last year, and equivalent to 3c33 per share. The dividend will be paid out of tax exempt profits, payable on October 20 to registered ordinary shareholders as at Tuesday.