The Farsons Group has reported a profit of €11.2 million for the financial year ended 31 January 2016, up by €3.2 million or 40% over the previous financial year.
Pre-tax profit from continuing operations was €10.1 million, an improvement of 23% over the same period.
Group turnover reached €85 million, a growth of 7% over previous financial year. Operating profit increased by €1.8 million to exceed €11.4 million whilst overheads were contained at 87% of the Group’s turnover, representing an improvement of 1.3 percentage points on January 2015.
The group said the building of the new beer packaging facility is reaching its final stages. While the official inauguration is planned for September 2016, beer packaging in the new facility is already underway.
"It is envisaged that the benefits from this €27 million investment will start to
be realized during the second half of 2016," the group said, adding that the facility would enable it to implement a broader and more ambitious export strategy.
Construction works on the expansion of the logistics and warehousing operations, together with the extension of an additional two floors on top of the administration offices, are ongoing, in line with plans for development of a business park.
The directors have approved a final net dividend of €2.2 million, that is €0.0733 per ordinary share of €0.30, to be paid on June 30.
Spin-off of non-operational property assets
Group Chairman Louis A Farrugia said the Farsons Group owns substantial property assets which are not an integral part of the beverage operation while having the potential to provide a better return to shareholders if such assets were to be governed by a focused board of directors and managed by a dedicated management team with the right skills and time to manage the property business.
"As part of our plans for the intended spin-off of non-operational property assets into a newly listed public limited company still to be approved by general meeting, much work is underway in preparation of this important and complex decision.
"The proposed idea of rehabilitating and converting the old brewery building into an office business park with an accompanying car park, a visitors’ centre, exhibiting the Farsons Story, as well as food and beverage outlets, is a feasible investment which can benefit and enhance shareholder value."
Chief Executive Norman Aquilina said the Farsons Group had, once again, delivered a very encouraging performance, with improved year-on-year results.
"The fact that we were able to maintain such a consistent momentum over the past years, despite fierce and ever-present competition, certainly gives credibility to our strategies. It also demonstrates our group’s resilience and our ability to respond effectively to evolving, and increasingly complex, market dynamics.
“While maintaining our commitment towards quality, our group has undertaken strategically important investments which will now enable us to sustain our growth in the long term. Undaunted by the scale of challenges ahead, we are also embarking on a number of important initiatives to ensure that we continue to deliver locally and internationally, as we continue to innovate and develop our brands,” said Mr Aquilina.