Farsons Group has registered pre-tax profits of €6.48 million for the year ending January 31, an increase of 28 per cent over the comparative period last year, the group said yesterday.
Group turnover reached record levels, increasing by nine per cent to €77.18 million. The different segments of the business, comprising the manufacturing, importation of foods and beverages, the Pizza Hut, Burger King and KFC operations, and the property segment, recorded improved turnover and profitability.
The importation arm registered the highest growth in turnover while the manufacturing function registered the best improvement in the segment results.
Group earnings before interest, tax, depreciation and amortisation for the financial year reached €13.98 million, a marked improvement of €2.49 million over the amount achieved last year. Group borrowings reduced by €3.28 million over the year and stood at €29.7 million at year end.
Group chief executive Norman Aquilina said yesterday that while competitive pressures remain intense, the importance for further investments to strengthen the group’s competitive edge remains a strategic priority.
“A number of key factors were pertinent to the attainment of these positive results, which included a focused management approach to address the numerous challenges, record tourist spend and arrivals, stable economic environment, a prolonged hot summer and Euro Cup activities,” Mr Aquilina said.
“The increase in selling and distribution costs was partly attributable to the increased turnover and partly a result of a material increase in impairment provisions on receivables following the adoption of a more prudent approach group-wide”.
Growth will be spearheaded through more innovation and added focus on exports. The recent investment in the new brewhouse is already contributing to making the business more competitive and creating new opportunities for the export markets, Farsons said.
The group will continue to focus on attaining further operational efficiencies, and the reduction of energy consumption and water usage are among the key priorities.
Reaching the right level of profitability is key to sustain further necessary investments, Mr Aquilina emphasised.
The directors will recommend a record total net dividend to the ordinary shareholders of €2.5 million at the annual general meeting on June 20, of which €400,000 has already been paid through the interim dividend last October.