Farsons turnover up 20% in interim 2016, up to €46 million

Farsons Group has reported a robust financial performance for the six months ended 31 July, 2016 with turnover up to €46 million and profits after tax from operational activities at €5.5 million, exceeding last year’s record figure by 20%.

“A solid performance of Malta’s economy together with significant growth in tourist arrivals and expenditure contributed to the improved Group performance, particularly within the company’s brewed core beer brands,” the company said.

The opening of two new franchised food outlets in Mosta was the prime driver for an improved performance of this segment while the food importation business registered improved turnover and profitability.

The board of directors recommended an interim dividend of €1 million, similarly to last year, paid out of tax-exempt profits on 19 October to those registered ordinary shareholders as at 5 October 2016.

Profit, including discontinued operations, dropped by €796,000, mainly resulting from a one-off material adjustment of €1.8 million in last year’s results relating to the changes in capital gains taxation rules.

“Our business remains highly dependent on the prevailing economic climate, consumer confidence and disposable income together with the performance of the tourism sector,” CEO Norman Aquilina said.

“We are monitoring potential adverse macro economic factors such as the continuing softness of economic growth across the EU and the ongoing situation following the UK referendum in favour of Brexit which may impact the results of the second half of the year,” Aquilina cautioned.

“Moreover, the significant additional depreciation charge on the investment in the beer packaging facility will also impact the full year’s results”.

Construction works on the extension of the logistics centre together with the new office space development to house the Group’s administrative employees are currently underway.