The Farsons Group has reported a profit before tax of €9.6 million for the first half of the year.
It said the results for the first six months of 2024 showcased its ability to navigate evolving market conditions through the implementation of strategic initiatives.
"The Group’s diverse business portfolio and proactive management efforts were instrumental in delivering this performance, despite challenges in certain sectors."
Group turnover for the first six months rose by 7%, to €69.8 million, with profit before tax up 18% to €9.6 million.
Group Chairman Louis A Farrugia attributed the growth to operational efficiencies and strategic investments.
The Beverage and Food segments saw increases of 6.6% and 8.2% with improved profit margins of 15.8% and 10.8% driven by higher demand and cost control measures.
Earnings per share (EPS) rose by 17%, from €0.209 to €0.245, reflecting the group’s strong performance and commitment to maximizing shareholder returns.
Group CEO Norman Aquilina, noted broad growth across all sectors in the first six months driven by changing demographics, increased tourism, and a growing supplier base.
"Despite fierce competition in the importation sector, which impacted profit margins, the group's diverse business model helped mitigate pressures. Strong performance in the manufacturing sector and franchised restaurants offset the margin mitigation, highlighting the group’s resilience and the success of its strategic initiatives focused on innovation, efficiency and margin optimisation," he was quoted as saying in a statement.
Farrugia emphasised the group’s ongoing commitment to long-term growth and sustainability with focus on reinvesting profits to modernise operations. Farsons is nearing completion of a major renewable energy project to expand its photovoltaic capacity, and is developing a CO2 recovery plant to enhance sustainability and strengthen its production supply chain.
A major investment in the food sector is underway with the construction of a state-of-the-art logistics center and office complex in Ħandaq, set for completion by 2026. This will expand warehousing and operational capacity to support the growth of subsidiaries Quintano Foods and Food Chain.
The group’s strategic review of its Foods business, which is nearing completion, includes evaluating the potential benefits of structuring the expanded operations into a separate listed entity. The board is expected to present detailed proposals to shareholders in the near future.
Looking ahead to the second half of the financial year, the group said it expects a moderation in performance due to seasonal factors that typically affect demand in the latter part of the year.