Farsons Group profit up 75 per cent to Lm1m

The Farsons Group yesterday announced a post-tax profit of Lm1,038,000 for the financial year ended on January 3, 2003, an increase of more than 75 per cent over the previous year's profit.

The group's turnover reached Lm23.6 million, an increase of 3.2 per cent.

The substantial increase in profit came from across the whole of the group's activities.

The directors of Simonds Farsons Cisk plc have already declared and distributed a net interim dividend of Lm70,000 to shareholders of ordinary shares and are recommending the payment of a final net dividend of Lm390,000. These dividends are being paid out of tax exempt profits resulting in a total dividend of Lm460,000 equivalent to 1c8 per share.

In a statement commenting on this achievement, group chief executive Louis Farrugia said the remarkable improvement was achieved despite the fact that during the past year, in general terms, domestic consumer demand had not been particularly robust and tourism arrivals were slightly down.

"We achieved our profit increase through increased market share in our import business, as well as through managing to contain costs throughout our business, in particular our fast food business which was restructured last year".

The parent company, Simonds Farsons Cisk plc increased its turnover by over half a million Malta liri to Lm15,532,000, while the turnover of the group's import business reached Lm4.8 million which represents an increase of 5.5 per cent over the previous year.

Both Wands Ltd and Anthony Caruana & Sons Limited have grown by taking on the challenge of the growing demand for imported brands and the liberalisation of the market place.

Food Chain Group reported a much-improved financial performance following the restructuring of the operations carried out in January 2002.

During the year, the group acquired the remaining 30 per cent shareholding in Eco-Pure Premium Water Company from American Liquid Packaging Systems to make this company a fully owned subsidiary of the group.

Sliema Fort Co. Ltd, which owns the lease of Il-Fortizza in Sliema, is now a fully owned subsidiary following the acquisition of the 50 per cent shareholding from Island Hotels Group.

The plan to consolidate all the group's properties - outside the industrial land and building that the group uses for brewing and bottling operations - under Trident Developments Ltd., was now complete and this company is producing "very encouraging" results.

Mr Farrugia reported that Farsons was no longer just a brewery or a soft drinks bottler but a diversified group in the beer, beverage, food retailing, leisure and property management business. Local brewing and bottling of beverages now account for just over 60 per cent of the group turnover with the remaining 40 per cent coming from non-manufacturing activities.