Mizzi Organisation, one of Malta's largest privately owned groups, has invested over €75 million to expand its business since its last bond issue in 2000, constituting its own vote of confidence in the economy, chairman John Grech told The Sunday Times.
The group, which currently employs over 900 people, is gearing up for further expansion across several sectors including retailing, which is fast becoming a main activity for the business.
It is also expanding its property arm, particularly as it holds a substantial portfolio of land in various commercial and residential areas with potential for development.
After making inroads overseas with a fashion franchise, Mizzi Organisation is to seek further internationalisation in other markets and other commercial activities.
And despite its profitability having been "slightly knocked" in the current downturn, projections suggest Mizzi Organisation's financial results will be better than those of 2008.
"Mizzi Organisation will continuously invest in its capacity to upgrade," Dr Grech said last week. "Now nearly 100 years old, the group is ready to venture into new opportunities. It is now looking at expanding some operations overseas, particularly within the EU and the Mediterranean."
Mizzi Organisation had remained a family concern - Chev. Maurice Mizzi is now the sole representative of the second generation which had been handed the reins by founder Spiro Mizzi. All other directors - Brian, Kenneth, Ian, Veronique and Christopher Mizzi as well as Angele Calleja - and all third-generation Mizzis. The family had placed all its properties at the group's operational use. It stills owns extensive property around the island and is in the process of developing a number of sites.
It is currently awaiting planning permission to be cleared by the Malta Environment and Planning Authority for some developments, including a site close to the Mizzi Organisation head office in Blata l-Bajda, and a large site in Gżira forming part of Muscat Motors. Other sites will be developed into office blocks for rental purposes.
Mizzi Organisation has invested significantly in a range of activities, including the extension of the Arkadia commercial complex in Victoria, Gozo, to house major fashion franchises Peacocks of London, Piazza Italia, and Orsay. Peacocks, the British-based value chain, is now present in Malta's main commercial centres - Valletta, Birkirkara, Paola and Sliema. Spurred by the success the brand received in Malta, Mizzi Organisation had its master franchisee rights extended to Slovakia where four stores have been opened in Bratislava, Nitra, Kosice and Trnava.
To further extend the Arkadia brand, Arkadia Foodstores opened within the Victoria complex and at Portomaso, St Julian's.
Considerable investment has been made in the Coca Cola bottler General Soft Drinks (GSD). The plant incorporates production, storage and distribution facilities, and revolves around leading brands Coke, Sprite, Fanta, Schweppes, and Kristal water. GSD also imports a wide portfolio of major international beverage brands.
Dr Grech said GSD had worked to streamline operations and increase efficiency levels, particularly after the liberalisation of its core sector and the change from glass to PET packaging. Parallel trading has had only a limited effect on the company's performance.
In recent years, Mizzi Organisation has channelled significant funds into developing its interests in financial services. The group is a shareholder in Banif Bank, a Maltese bank that is part of the Portuguese group, and has two directors on the board. It is also a "considerable" shareholder in First United Insurance Brokers Ltd, the insurance broker, manager and risk consultancy firm. Meanwhile, United Acceptances Finance Ltd, the organisation's car finance company, has grown to a customer base of over 5,000 clients.
Mizzi Organisation also holds a six per cent shareholding in Maltco Lotteries Ltd, holder of the exclusive licence to operate all National Lottery games locally.
The company's tourism interests include 100 per cent ownership of the four-star Waterfront Hotel along the Sliema promenade. Dr Grech said the hotel had enjoyed better occupancy in recent months than competing properties in its class at higher room rates, partly thanks to solid repeat business.
Mizzi Organisation owns part of the Mellieħa Bay Hotel and has a 50 per cent stake in the Institute for English Language Studies, one of the first EFL operations to be established in Malta in 1985, and which Dr Grech said remained one of the local industry's front-runners.
As one of the shareholders of Kemmuna Ltd, operators of the Comino Hotel, the group was intent on elevating service and quality standards at the popular property that had considerable potential.
Substantial funds have been channelled into the recent development of separate showrooms for two of the group's four automotive arms: Continental Cars and Muscat Motors to better showcase marques including Audi, Porsche, Volkswagen, BMW, Mini, Land Rover, and Citroën. The overlying building on Muscat Motors in Gżira, the BMW Building, is entirely occupied; Banif Bank has leased considerable space to house its headquarters there.
Mizzi Organisation currently commands just under a quarter of Malta's automotive market share, thanks to its exclusive national dealership rights for 14 car brands, including Nissan, Malaguti, Daihatsu, Seat, Mitsubishi Motors, Suzuki, and Renault Trucks. Dr Grech explained that sales of higher end marques had been satisfying despite the recent flood of high value, second-hand imports, particularly from the UK.
Muscat Motors quickly reacted to compete in the second-hand market in this bracket and launched BMW Premium Selection, an outlet for BMW-approved previously owned vehicles. A similar operation has been launched for the Mini brand. Both instantly won significant clientele. As the only authorised BMW and Mini service agent in Malta, Muscat Motors has also won business from the independent second-hand imports market.
Behind the business scenes, the Mizzi Organisation and its directors have been supportive of many deserving causes. Chev. Mizzi last year made significant capital investment to set up the Spiro Mizzi Foundation. The charity will channel income derived from the investment to assisting the needy. Chev. Mizzi, Fr Hilary Tagliaferro, and Dr Grech sit on the foundation's board.