“Farsons Group registered steady growth despite competitive market pressures…”

Farsons Group recorded a pre-tax profit of €16.1 million in the financial year FY23-24, representing a 4.9% increase from the €15.3 million reported in FY22-23.

The figures were announced in the group’s Annual Report for the financial year, released on Wednesday

During the financial year, Farsons Group’s revenue surged upwards by 12.4% to €132.9 million (FY22-23: €118.2 million), driven by an improved performance in the beverage and food operating segments of the group.

Income from the beverage sector rose by 8.8%, while that of the food sector grew by 23%. Revenue from the beverage sector included almost €1.7 million from the first full year of operations at The Brewhouse, while that of the food sector came from the full year of operations for franchised outlets which opened midway through the previous year, together with a growth in demand.

As a result of the increased activity, cost of sales was also on the rise, going up by 12.6% to €83.4 million (FY22-23: €74 million).

Additionally, during the financial year, increases were also experienced in selling and distribution costs as well as administrative expenses, which stood at €14 million and €17.5 million, respectively. While much of this increase was related to volume growth, it was also impacted by higher employee costs and the first full year of costs for the start-up of The Brewhouse operations.

The group’s overall rate of return on turnover prior to finance costs dropped from 14.1% to 13.1%.

In terms of its balance sheet, Farsons Group’s total assets as at the end of the reporting period amounted to €212.3 million, contracting slightly from the €214 million reported in the previous year.

The Board of Directors resolved to recommend the distribution of a final net dividend of €3,960,000, equivalent to €0.11 per ordinary share of €0.30. The payment of this dividend will be done on 27th June 2024 to shareholders registered on the company’s register of members as at close of trading on 5th June 2024.

On his part, Chairman Louis A. Farrugia welcomed the increase in trading activity throughout FY23-24, yet also reaffirmed the Directors’ point that not all inflationary cost increases could be passed on.

He also provided updates on the Ħandaq logistics centre, stating that construction on the centre has started with a view to it being completed by the end of 2026. Additionally, Farsons Group also intends to proceed with the investment of an automated returnable logistics facility at Mrieħel, set to be completed by summer 2026.

“Taken together, these two capital projects will involve an investment in excess of €30 million,” Mr Farrugia said.

“Farsons Group is now unrecognisable from that of a decade ago. Not only has the operation changed visibly, but more importantly, the company’s management and employees are professionally more prepared to look at new ideas and ready to venture into new revenue streams,” he added.

 

Malta Company Announcements:

Tigne’ Mall plc

The Annual General Meeting of the Company (“AGM”) will be held on Friday 21 June 2024 at 10:00. If thought fit, passing the resolutions set out below as agenda items 1 to 5 and holding a discussion on agenda item 6.

ORDINARY BUSINESS – ORDINARY RESOLUTIONS

1. Annual Report and Financial Statements – That the Audited Financial Statements of the Company for the financial year ended 31 December 2023 and the Directors’ and Auditors’ Reports thereon be received and approved.

2. Dividend – That a final net dividend of €815,000, equivalent to a net dividend of €0.01445 per ordinary share, as recommended by the Board of Directors, be declared.

3. Reappointment of Auditors – That the reappointment of PricewaterhouseCoopers of 78, Mill Street, Zone 5, Central Business District, Qormi, Malta as auditors of the Company be approved and that the Board of Directors be authorised to establish their remuneration.

Medservregis plc

The group’s overall revenue grew 15.4% from €14.9 million in Q1 2023 to €17.2 million in Q1 2024, driven by a strong increase in Oil Country Tubular Goods (OCTG) revenue, while Integrated Logistics Support Services (ILSS) and Photovoltaic Farm revenues remained flat.

The group’s EBITDA jumped significantly, nearly doubling from €2.3 million to €3.9 million in Q1 2024. This 70% increase, reflected in an improved EBITDA margin from 15.5% to 22.5%, a reflection of improved operational margins.

The Company is confident that 2024 will deliver performance in line with 2023, thanks to the resilience of its OCTG division and to new projects initiated in Guyana.

The Company continues to face advserse foreign exchange issues, in particular in West Africa and Egypt.

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