Farsons Group’s performance in the first six months of this year was heavily impacted by the COVID-19 outbreak and the ensuing economic downturn.

Norman Aquilina, CEO of the group reported that this financial period got off to a strong start with turnover and profits in February exceeding those of the previous year by 10 per cent. However, the onset of COVID-19 and the regulations that ensued were very quickly reflected in the business performance across the group.

Turnover fell precipitously across all business lines as consumer demand for food and beverage products declined substantially.. 

“This decline was particularly acute in the bars and restaurant sectors when these were ordered to close by government regulation. All mass events were also cancelled.

“The closure of Malta International Airport between mid-March and July 1 effectively also shut down the tourist sector over that period, badly impacting the hotels sector.

“April 2020, the first full month impacted by COVID-19, saw the group’s turnover fall by 55 per cent,” he said.

Turnover in the six-month period to July 31 amounted to €36.8 million compared to €53.3 million for the same period last year – a decrease of 31 per cent.

Farsons chairman Louis Farrugia said that “the board and management’s immediate focus to curtail certain operational and administrative costs, revisit ways of working, while at the same time re-evaluating planned capital investments programmes were, and continue to be, critical measures for the protection of employment, commercial viability and safeguarding the financial integrity of the group.” 

The cost cutting measures enabled Farsons to register a net profit of €1.6 million for the six- month period. The group and its employees also benefitted from the support extended by the government during the period. In the same period last year, the group’s net profit was €6.4 million.

Farrugia said that “in the difficult and uncertain environment, the board of directors does not feel that it would be appropriate to declare the payment of an interim dividend.”