The group said that its “steady performance” was maintained by continuous capital investments in operational assets and human resources. The group added that it will continue to focus on its strategic investments, on further product improvements and on pursuing its internationalisation plans.

“It is encouraging to report a steady performance across all segments within our group, which continues to deliver robust results despite competitive pressures,” said Norman Aquilina, Farsons Group Chief Executive.

“The changing market landscape and changes in consumer spending patterns, along with growing concerns on packaging waste, will continue to be important challenges for the Group, as will the maintenance of equitable market conditions that ensure a level playing field for all operators in the sector,” Mr Aquilina added.

Due to fierce market competition fuelled by “newly-important brands” and pricing challenges, the brewing and beer segment only recorded a marginal increase, the press statement says. Nevertheless, the beverage and food importation segment registered an improved 10.3% contribution to profit, while the franchised food retailing establishments maintained growth with an 8.6% turnover increase.

“The group reaffirms its commitment in internationalising the business while remaining prudently optimistic of the growth potential in existing and new markets,” Group Chairman Louis A Farrugia. “The Board of Directors recognise that the long-term investment strategy deployed over the years will continue to prove beneficial in providing in an efficient, competitive and profitable manner the diversified high-quality product mix sought by our customers,” Mr Farrugia added.

The post Farsons after-tax profit grows 4.7% to €6.4m in H1 2019 first appeared on The Malta Business Weekly.

The north harbour area, where the average price of a property is twice the national average, was accounted for 30% of total market turnover and 40% of its growth in 2018, according to a study Mr Cordina presented.

The highest rates of price growth and the highest relative growth in turnover were registered in the more affordable central areas.

HSBC Bank Malta says it keeps its commitment to offering customers support in purchasing homes through a range loan option, according to the press release.

Mr Cordina emphasised that investment in quality is key to market resilience and that orderly evolution of the market is essential for its sustained growth.

The event was also addressed by Daniel Robinson, Head of Retail Banking and Wealth Management for HSBC in Malta.

Mr Robinson spoke on the compelling fixed and variable rate propositions that HSBC Bank has launched in recent months and the other measures it has taken to train and develop its staff and welcomed the recent publication of the Central Bank of Malta directive on mortgage lending.

He said HSBC is in favour of the directive as it will give lenders minimum specific guidelines for responsible lending, and by doing so, it will protect the future sustainability of the industry.

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On the one hand, decreases of 16.5% and 2.5% were recorded in the consumer and capital goods sectors, respectively. On the other hand, increases of 4.2% and 0.8% were recorded in the energy sector and intermediate goods sector, respectively, as the NSO press release says.

Seasonally-adjusted industrial employment increased by 0.1%, while hours worked decreased by 0.2%, and gross wages and salaries increased by 2.2%, according to NSO’s statistics.

Year-on-year increases of 9.4% and 7.8% were recorded in the intermediate goods and energy sectors, respectively. Meanwhile, respective decreases of 3.3% and 0.1% were recorded in the capital and consumer goods sectors, in Q1 2019, according to the NSO press release.

A decrease of 0.6% was recorded in the year-on-year unadjusted industrial employment. Working-day adjusted industrial hours worked decreased by 1% while working day adjusted industrial gross wages and salaries increased by 3.6%.

The full report including charts and visual representation of data is available for download at the website of NSO.

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The group’s pre-tax profit, following the “spin-off” of Trident Estates Plc in the previous financial year, reached €15.1m — an increase of 10% from last year’s profit of €13.8m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €23.2m, an increase of 5% over last year.

The group’s net borrowings decreased by €6m, resulting in a lower gearing ratio of 23.4% as compared to 28.8% in the previous year.

Total equity of the group increased from €96.6m to €108.3m reflecting the profit generated, net of the dividends distributed during the year.

Board recommends €0.10 per share dividend

The board has recommended paying a final dividend of €3m — €0.10 per share — for approval at the Annual General Meeting scheduled for 24 June 2019.

Together with the net interim dividend of €1m — €0.0333 per share — paid in October 2018, this will result in total dividends of €4m being paid in respect of the year ended 31 January 2019, the press statement says.

This represents an increase of 11% or €400,000 over the dividends declared in the previous year.

Challenging year behind

Despite what the company tags as “aggressive competition” in the local market, Farsons registered growth in its locally produced products while also increasing its imported beer, spirits and wine portfolio in response to changing consumer preferences, according to the press release. Its food import business together with its franchised food business registered higher turnover resulting in improved contribution levels, despite ongoing challenges on distribution costs, the press statement adds.

“While such results are encouraging and serve to motivate us to pursue further our strategic path, we shall continue to face our fair share of challenges. These include an ever increasing aggressive competition across all business sectors, rapidly evolving consumer tastes and preferences, as well as environmental and health considerations and resultant legislative pressures,” said Norman Aquilina, CEO of the Farsons group.

“Also, there are, of course, both moral and business imperatives to do more than just increase profits. Indeed, we are obliged to take a long-term view which considers the interest of a wide spectrum of stakeholders ranging from our consumers, our workforce, our suppliers, our shareholders and the broader community as a whole. Over the last year Farsons continued to implement wide-ranging initiatives to embrace our social and environmental responsibilities in practice, as enshrined in our mission statement, and this through increasingly operating our business units in a healthier, cleaner and more sustainable manner,” Mr Aquilina added.

Farsons expects the mandatory national Beverage Container Refund Scheme (BCRS) on all one-way beverage containers to come in force in a year. Farsons says it is fully aligned with the environmental objectives of the scheme, adding that it believes effective enforcement across the board is an essential prerequisite for achieving the set objectives.

“Innovation remains high on the group’s agenda, as management continues to prioritise the development of products which proactively meet, and exceed, the ever-evolving expectations of our consumers. Another growth pillar is internationalisation. Following significant investments made by the group, further tapping a growing number of export markets remains a priority, although this presents new and ongoing challenges that nonetheless continue to be addressed,” said Louis A Farrugia, Chairman of Farsons group.

Further projects in pipeline

Malta’s well-known local Cisk lager has its 90th anniversary this year. Marking this milestone, Mr Farrugia said that Cisk is “not only a Maltese icon but has won respect and a following from an international audience”.

The CEO also mentioned the Old Brewhouse project launched in 2018, which will feature a microbrewery, a brewpub, a visitor attraction, depicting Farsons history and story, and a cafeteria/bistro, among others. Coordinated with Trident Estates’s Business Park Project, the two projects could open in the first quarter of 2021.

“Farsons’s significant investments over many years have notably contributed to the improved performance, and the group is cautiously optimistic of its ability to continue to deliver growth in its turnover and profitability in a growing Maltese economy. However, continuous growth is also dependent on sustained favourable economic conditions leading to increased consumer demand, equitable market conditions, a level playing field for all operators in the sector together with the growth of the tourism industry which is showing signs of reaching a plateau for the coming year,” Mr Farrugia concluded.

The post Farsons sees 5% rise in turnover to €99.8m in 2018 first appeared on The Malta Business Weekly.

Real estate activities saw a massive 50.5% turnover hike during the last quarter of 2018, as compared to the same quarter year earlier.

Motor trade activities were up by 7.1%, transportation and storage activities grew by 4.2%, accommodation and food service activities rose by 3.4%, retail trade was up by 3.0%, administrative and support service activities increased by 3.0% and wholesale trade saw a rise of 2.1%, according to figures put out by the NSO.

Turnover in scientific and technical activities dropped by 10.1% information and communication activities were down by 6.6% in Q4 2018, as compared to the base period.

The full report including charts and visual representation of data is available for download at the website of NSO.

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