Farsons registers steady growth despite 'ongoing challenges'

Although it reached a record turnover of €99.8 million, Farsons says it continues to face challenges due to increased competition and distribution costs

By end 2019, the majority of Farsons distribution trucks will have Euro 5 or 6 emission standards (Photo: Farsons)
By end 2019, the majority of Farsons distribution trucks will have Euro 5 or 6 emission standards (Photo: Farsons)

Simonds Farsons Cisk has registered an improved performance in its turnover and operational profitability across all its business segments, despite what it said were ongoing challenges.

Farsons said in a statement that it has maintained its growth rate with turnover increasing by 5% over the previous year, to reach an all-time high of €99.8 million for the financial year ending 31 January 2019. The group's pre-tax profit reached €15.1 million, an increase of 10% over last year.

"In spite of growing aggressive competition within the local beverage market, the company has registered growth in its locally produced products whilst also increasing its imported beer, spirits and wine portfolio in response to changing consumer preferences," Farsons said.

It highlighted that the group's food importation business together with its franchised food business registered higher turnover resulting in improved contribution levels despite ongoing challenges on disribution costs.

“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," Farsons CEO Norman Aquilina said.

Farsons acknowledged that environmental pressures for business units to operate in a healthier, cleaner and more sustainable manner were doing their part in increasing costs.

Farrugia referred to the Old Brewhouse project, the development of which started in 2018. The project will lead to the launch of microbrewery, a brew pub and a visitor attraction, depicting Farsons' history.

It is being undertaken in parallel with Trident Estates plc’s Business Park Project, with the two projects forecast to be completed by the first quarter of 2021.

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