Farsons today reported an 84 percent increase in profits for the six months which ended on July 31.

It said that profit after tax for the period increased from €982,000 to €1,807,000.

"This increase in profits of 84% was achieved despite the absence in the period of any profits from the disposal of property (2008: €247,000 net of tax), and also despite of a decline in group turnover of 4.3% (€1.5 million) over the comparative period."

It said that approximately half of the decline in turnover occurred in the beverage importation segment, mainly as a result of the reduction of excise duties on spirits which became effective as of 1 January 2009. Sales of locally produced beverages to the on-premise market also declined as a result of a decrease in the number of tourists visiting Malta.

On the other hand, business in the take-home trade compensated, in part, for the shortfall in the on-premise segment. Despite the decrease in group turnover, the reduction in the costs of certain raw materials and the attainment of the targeted production efficiencies, together with the various cost containment measures implemented over the past years, were key factors that resulted in the achievement of an improved gross profit margin of 24% (2008: 21.4%), and an improved operating profit of €2.8 million (2008: €2 million).

"The board of directors is confident that the cost reductions that have been implemented will remain permanent, and that further opportunities exist for improved profitability levels going forward."

The directors are recommending a net interim dividend of €300,000 in respect of the financial year ending 31 January 2010, payable on 23 October 2009 to the ordinary shareholders who will be on the Register of Members of the company on 9 October 2009.