Simonds Farsons Cisk plc yesterday reported a post-tax profit for the six months to July 31 of €3.8 million, up €1.2 million or 45 per cent over the first six months of the previous financial year.

Group turnover for the six months to July increased by 10 per cent to reach almost €40 million. The group achieved an operating profit of €4.7 million, an improvement of €1.2 million or 33 per cent over the operating profit for the same period last year. The strong performance of the company-owned Cisk and Kinnie brands, innovation, improved efficiencies, record tourist numbers and exceptionally warm weather conditions conducive to higher beverage consumption all contributed to the positive performance registered.

“While we are clearly satisfied with these results, it is critical to underline the significant importance of ensuring the right level of profitability to be able to sustain the continued level of investment necessary to maintain our competitive advantage,” group chief executive officer Norman Aquilina said.

“The challenges ahead remain significant, particularly due to growing competitive pressures along with the volatile international economic scenario. This being particularly relevant as we continue to pursue our growth strategy spearheaded through both innovation and export.”

Mr Aquilina added that in the face of a highly competitive and fully liberalised market, the company is continually redimensioning and restructuring in line with today’s market realities. The business model was delivering the necessary results, Mr Aquilina pointed out, “results which are important and needed to be able to adequately sustain further investments”.

Farsons said the immediate outlook for the forthcoming months depends on the international and local economic circumstances together with the sustainment of tourist arrivals.

“We therefore remain cautious and vigilant to ensure we maintain a profitable business model in spite of the challenging economic environment we continue to operate in,” the company said.