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Continued investments deliver improved results for Farsons 4/24/2013

The Farsons Group has today published its results for the financial year ended 31 January 2013. Group turnover reached record levels, increasing by 9% over the same period last year to €77,180,000. Profit for the year also increased by 26% to reach €5,969,000.

Mr. Norman Aquilina, CEO, stated that whilst competitive pressures remain intense, the importance for further investments to strengthen the group’s competitive edge remains a strategic priority. Commenting on the financial results, Mr Aquilina stated that “A number of key factors were pertinent to the attainment of these positive results, which included a focused management approach to address the numerous challenges, record tourist spend and arrivals, stable economic environment, a prolonged hot summer and Euro Cup activities.  The increase in selling and distribution costs were partly attributable to the increased turnover and partly a result of a material increase in impairment provisions on receivables following the adoption of a more prudent approach on a group-wide basis”. 

The different segments of the business, comprising the manufacturing, importation of foods and beverages, the operation of Pizza Hut, Burger King and KFC and the property segment, recorded improved turnover and profitability. The importation arm registered the highest growth in turnover while the manufacturing arm registered the best improvement in the segment results.

The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the financial year under review reached €13,983,000, a marked improvement of €2,530,000 over the amount achieved last year.  Group’s borrowings reduced by €3,285,000 over the year  and stood at €29,703,000 as at the year end. 

The directors also commented on the outlook for the new financial year, and highlighted that growth will be spearheaded through more innovation and added focus on exports.  The recent investment in the new brew house is already rendering the business more competitive and thus creating new opportunities for the export markets. 

Going forward, apart from attaining further operational efficiencies, the reduction of the group’s energy consumption and water usage remains one of the priorities.  Mr Aquilina emphasised that attaining the right level of profitability is key to sustain further necessary investments going forward.

The directors shall be recommending a record total net dividend to the ordinary shareholders of €2.5 million at its Annual General Meeting on 20 June 2013, of which €400,000 has already been paid by way of an interim dividend in October 2012.