Record tourism pushes Farsons pre-tax profits up by 23%

Simonds Farsons Cisk plc has registered another year of solid and profitable growth with group turnover for the year ending 31 January 2016 reaching €85 million, a 7.2% growth over the previous year, and pre-tax profits jumping by 22.8% to €10.1 million.

The strong performance for the year was “positively influenced by a vibrant economic environment spurred on by record tourist arrivals and increased consumer demand for Farsons products,” the company said.

The group attained significant improvements on its twin strategy of innovation and exports, with increased investment in human resources, operational assets and marketing strategies.

Farsons is currently commissioning a new €27 million beer packaging investment and extension to its logistics centre and administration block by mid-2017.

“Farsons Group owns substantial property assets which are not an integral part of the beverage operation while having the potential to provide a better return to shareholders if such assets were to be governed by a focused board of directors and managed by a dedicated management team with the right skills and time to manage the property business,” chairman Louis A. Farrugia said.

Farsons' new beer packaging centre

“As part of our plans for the intended spin-off of non-operational property assets into a newly listed public limited company still to be approved by general meeting, much work is underway in preparation of this important and complex decision. The proposed idea of rehabilitating and converting the old brewery building into an office business park with an accompanying car park, a visitors’ centre, exhibiting the Farsons Story, as well as food and beverage outlets, is a feasible investment which can benefit and enhance shareholder value.”

CEO Norman Aquilina said the group had undertaken strategically important investments for its long-term growth. “The fact that we were able to maintain such a consistent momentum over the past years, despite fierce and ever-present competition, certainly gives credibility to our strategies. It also demonstrates our Group’s resilience and our ability to respond effectively to evolving, and increasingly complex, market dynamics.”

Shareholders’ funds increased by €9 million to exceed €109 million. EBITDA (earnings before interest, tax, depreciation and amortisation) for the year amounted to €18.7 million compared to €17.2 million last year.

The board of directors is recommending an increased final dividend of a total declared dividend for the year of €3.2 million. This figure is €0.2 million higher than the amount declared last year.