Last Updated on Thursday, 26 September, 2024 at 9:06 am by Andre Camilleri
The Farsons Group has reported encouraging financial results for the first half of the financial year, showcasing its ability to navigate evolving market conditions through the implementation of strategic initiatives. The Group’s diverse business portfolio and proactive management efforts were instrumental in delivering this performance, despite challenges in certain sectors.
Group turnover for the first six months rose by 7%, to €69.8 million, with profit before tax up 18% to €9.6 million. Louis A Farrugia, Chairman of the Group, attributed the growth to operational efficiencies and strategic investments. The Beverage and Food segments saw increases of 6.6% and 8.2% with improved profit margins of 15.8% and 10.8% driven by higher demand and cost control measures.
Earnings per share (EPS) rose by 17%, from €0.209 to €0.245, reflecting the Group’s strong performance and commitment to maximizing shareholder returns.
Group CEO Norman Aquilina, noted broad growth across all sectors in the first six months driven by changing demographics, increased tourism, and a growing number of supplier base. Despite fierce competition in the importation sector, which impacted profit margins, the Group’s diverse business model helped mitigate pressures. Strong performance in the manufacturing sector and franchised restaurants offset the margin mitigation, highlighting the Group’s resilience and the success of its strategic initiatives focused on innovation, efficiency and margin optimization.
Louis A Farrugia emphasized the Group’s ongoing commitment to long-term growth and sustainability with focus on reinvesting profits to modernize operations. Farsons is nearing completion of a major renewable energy project to expand its photovoltaic capacity and is developing a CO2 recovery plant to enhance sustainability and strengthen its production supply chain. The Group also remains committed to using returnable and refillable containers.
A major investment in the food sector is underway with the construction of a state-of-the-art logistics center and office complex in Handaq, set for completion by 2026. This will expand warehousing and operational capacity to support the growth of subsidiaries Quintano Foods and Food Chain.
The Group’s strategic review of its Foods business, which is nearing completion, includes evaluating the potential benefits of structuring the expanded operations into a separate listed entity. The Board is expected to present detailed proposals to shareholders in the near future.
Looking ahead to the second half of the financial year, the Group expects a moderation in performance due to seasonal factors that typically affect demand in the latter part of the year. Despite the increasingly competitive environment, the Board and management remain focused on delivering superior value through continued investment, innovation, sustainability, and operational improvements.
In light of the strong financial performance, the Board of Directors has declared an interim dividend of €0.06 per share. This dividend will be distributed on 16 October 2024 to the shareholders who will be on the register of members as at 2 October 2024. This move reflects the Group’s ongoing commitment to delivering consistent value to its shareholders, underpinned by its robust financial health and strategic outlook.
