Turnover by Simonds Farsons Group reached an all-time high of €88 million for the financial year ending January 31, representing a marginal increase of two per cent over the previous financial year’s record results.
The profit for the year amounted to €12 million, an increase of €0.9 million or 8% compared to the previous year.
The strong performance was registered across the group on varying levels thanks to a series of favourable factors namely, the growth of the economy, an improved beer portfolio that was possible as a result of the investment into new beer products and packages together with the improved performance of the group’s subsidiaries, Farsons said.
It said these positive results were even more relevant given the increased depreciation charge arising after the commissioning of the new beer packaging facility. On the other hand, the continued spotlight on obesity and sugar consumption, coupled with increased taxes, impacted the consumption of soft drinks.
Group chairman Louis Farrugia said that last year’s commissioning of the new state-of-the-art beer packaging facility had placed the company in a much better position to pursue growth ambitions through its export strategy.
The group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) for the year reached €21 million, an increase of €2.5 million over the financial year ended January 2016.
The gearing ratio stood at 22% compared to 18% for the previous year while shareholders' funds increased by €14 million to exceed €123 million (January 2016: €109 million).
The board shall be seeking the shareholders’ approval at the forthcoming annual general meeting to implement the proposed spin-off of its property portfolio that is intended to be effected by way of a distribution in specie of its investment in the property company.
It is the intention for the property company to eventually file an application with the listing authority for admission to listing of its shares on the Malta Stock Exchange.
The board of directors is recommending an increase in its final dividend of €0.2 million. As a result, once the final dividend is approved during the annual general meeting, declared dividend relating to the financial year ended January 31 shall amount to €3.4 million.