Simonds Farsons Cisk has continued to widen and deepen its presence in both traditional and new export markets, Norman Aquilina, Farsons Group Chief Executive told The Sunday Times of Malta.
“Farsons is now geared to export substantially more volumes than it currently exports and even if our export development plans continue to be challenging, we continue to widen and deepen our presence in both traditional and new markets.
“In 2017 Farsons exported to 20 countries as we pursue our strategy and reap the benefits of our substantial investments which are improving our brands’ competitive position,” Mr Aquilina said.
Mr Aquilna was speaking to The Sunday Times of Malta after Farsons announced it had registered another year of positive and robust growth. Group turnover for the financial year ending January 31, 2018 increased to a record level of €95 million, representing an increase of 7.8 per cent over the previous financial year’s results, whilst profit before tax from continuing operations increased by 18.2 per cent to €13.4 million
When the results were announced the company said that the Group continued to build on its two main growth pillars namely, innovation and internationalisation.
“Following the significant investments made by the Group, further tapping of export markets remains a priority while management will continue to prioritise the development of products which proactively meet, and exceed, the ever evolving and dynamic expectations of its customers,” the company said.
Mr Aquilina said that encouraging growth has been registered in Italy. “Cisk Export, Cisk Strong and Farsons Double Red continue to find favour both with trade and consumers. Italy is our largest export market and remains an important area of focus and growth,” he said.
Encouraging beer growth was also registered in South Korea, where Cisk Lager and Blue Label are sold and distributed through leading retail stores in the region
He also said that encouraging beer growth was also registered in South Korea, where Cisk Lager and Blue Label are sold and distributed through leading retail stores in the region.
“Blue Label and Cisk Pilsner were launched in Gibraltar late in the year and a reputable national importer was appointed in Israel, where both Cisk Lager and Cisk Strong are now available on draught.
“The year also saw the first containers of Cisk Pilsner, Farsons Double Red and Farsons Blue Label being shipped out to the US and distributed across the States.”.
Mr Aquilina also said that the Kinnie franchise operation in Australia also registered positive and profitable growth, with the product being distributed predominantly in the cities of Sydney and Melbourne. Cisk Lager is also being made available in these markets.
He said innovation will continue to remain high on the company’s agenda, not only in relation to new product development, but in everything that it creates and delivers.
“We are always trying to stay ahead by launching new products to suit consumers’ tastes as they become more informed and increasingly opinionated, demanding variety and convenience at affordable prices.”
Asked how he felt about the record Group turnover of €95 million registered as Farsons celebrates its 90th anniversary and whether he was confident about the future, Mr Aquilina said that in spite of the growing competitive pressure, the company is consistently making headway, “even if our resilience is being tested more than ever before”.
“These record results are due to both external and internal reasons, with market realities constantly challenging us to ensure we retain our competitive advantage. Apart from having to live up to this dynamic environment, our added strategic focus on innovation and export-led growth has only been possible thanks to our extensive investments – over €100 million during these last 10 years. Farsons has an enviable track record as an industry frontrunner in terms of investment and to sustain this we need to push ahead for continued profitable growth,” he said.
Mr Aquilina added: “That said, yes, we are confident about our future. This confidence comes from the fact that over these years we have seen consistent improvements as a result of the strategic direction we have embarked on, a direction which is delivering and in which we firmly believe offers good prospects for our future.”
The company said in a statement that investment by the Group over the past years, extended further by an additional €13.5 million invested in 2017, ensured that the company is consistently and effectively equipped and resourced to respond to the dynamic local and export market conditions.
“Furthermore, significant efficiency gains on the production lines together with various management initiatives leading to improvements in productivity further contributed to these positive results. Consumer demand across all beverage sectors improved during the year under review while the company responded to the market in a timely and effective manner.
“The strong performance for the year was also positively influenced by continued economic growth, complemented by an expanding tourism sector, prevailing favourable weather conditions besides various crowd events organised locally during the year.”
Group chairman Louis Farrugia stated: “I am once again most pleased to report on another set of positive results achieved by the Group. This year we celebrate the 90th anniversary of Farsons brewing its first beer named ‘Farsons Pale Ale’ at its original brewery in Hamrun. I am indeed proud to have served 45 of these years for a Group of Companies that has grown from humble beginnings to one that now aspires to expand and develop in markets away from our shores, and which is actively taking steps to internationalise its business model.”
The Board of Directors is recommending increasing the final dividend by 8.3 per cent to €2.6 million.