Simonds Farsons Cisk plc will not be recommending a dividend for the year ended January 2021 after reporting a €4.4 million profit before tax, reflecting a decrease of €7.9 million, (-64%) on the previous year.
Group turnover for the year amounted to €73 million compared with €103.5 million the previous year, a decrease of 29.4%.
The reduction in turnover was experienced across all sectors, with the higher drops being registered in the beverage importation operations and the franchised food retailing establishments.
Both industries were heavily impacted by the drop in tourism, the closure of bars and restaurants at various times during the year and the cancellation of all mass events.
However, the drop in the franchised food retailing establishments was partially mitigated by higher home delivery volumes.
Better than expected
Farsons said that the group's financial results were better than expected because of measures to contain costs, replace part of the lost customer base and due to government help. It retained its full workforce.
Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to €14.95 million, compared to €22.7 million last year.
The group’s net indebtedness decreased by €15.6 million and now stands at €18.6 million.
Profit after taxation amounts to €3.3 million.
'Challenging environment'
Farsons group chief executive officer Norman Aquilina said the pandemic had "interrupted" year-on-year growth.
"Nonetheless, there is room for us to be reasonably satisfied when one considers the context of the very challenging and complex environment in which we have had to operate," he said.
“Faced with this scale of disruption and decline in consumption, our group immediately undertook a number of measures to ensure a safer, yet productive working environment, whilst re-aligning our cost structures to preserve the financial strength we have developed over the decades."
He said he was preparing for better days ahead.
Dividends suspended
Commenting on the group’s performance, chairman Louis A. Farrugia said the decision to defer or suspend the declaration of regular dividends was not taken lightly.
“However, given the huge uncertainty that prevailed last year, the board does not feel able to recommend a dividend with respect to the financial year under review," he said. "Should things go well, as it is hoped will be the case, then the Board hopes to favourably consider the declaration of an interim dividend at the time of the announcement of our half-yearly results in September 2021.”
Farrugia also reported progress on the Old Brewhouse investment. When completed, it will promote the group’s industrial heritage and will house revenue-earning facilities such as a micro-brewery.
Farsons Group will be holding its annual general meeting remotely on June 24.