
Brewing and Beverage production sector increased from
€43.1 million in FY 2021 to €51.3 million (+18.8%) in the year
under review, whilst the segment’s profit more than doubled
from €4.9 million to €9.9 million (+103.7%). The Importation
of food and beverages sector increased from €26 million to
€31.9 million (+22.5%), again with profit from the segment
up substantially from a loss of €366,000 to a profit of €1.9
million (+631%). Turnover of our franchised food retailing
operations increased from €11.7 million to €15.7 million
(+34.4%) whilst the profit increased from €1.2 million to €1.6
million (+35.2%).
These are indeed impressive numbers. Furthermore,
EBITDA for the year reached pre-2019 levels at €22.7
million - up from €14.9 million in FY 2021. Net borrowings
at the balance sheet date are down to record low levels at
€10.3 million. In fact, our gearing percentage is at 50 year
all-time low of 12.6%. Given this all-round improvement in
performance your Board is pleased to propose a net final
dividend this year of €4 million payable in June of this year.
You will note that the Board of Directors is also proposing a
bonus issue to shareholders (on a pro rata basis) of 1 (new)
share for every 5 shares held. This bonus issue will be subject
to the approval of the shareholders at the forthcoming
Annual General Meeting. 6 million new shares of €0.30
each (fully paid up) will be created and will be funded by
the capitalization of €1.8 million from retained profits. A
resolution will also be brought before the Annual General
Meeting to increase the authorized capital of the Company.
Having fought our way through the severe immediate
impact of COVID, we are now facing the economic
aftermath. These global challenges have been gravely
exacerbated by the outbreak of war between Russia and
Ukraine. Business confidence is taking a hit from growing
inflationary pressures and significant supply chain issues.
Once again – but for dierent reasons - we are facing an
uncertain future. However, we are encouraged by the
resilience that our business has demonstrated when tested,
the strong revival of the on-premise sector and the growth
in tourist numbers being forecast.
We have plans to grow our restaurant business by opening
four new outlets in the coming months, and we are also
planning to build a new state of the art logistics centre for
our food business. Exports of our beverages reached record
levels last year and we aim to continue to grow this segment
in the years to come. Clearly, we shall continue to look at
market opportunities both in Malta and overseas.
It has been a challenging 24-months in facing the diculties
of COVID-19 and its impact on business confidence. As
always, I am very thankful to all the workforce for their
continued loyalty, hard work and commitment.
On 25 November 2021 we learnt of the shocking news of
the sudden passing away of our dear colleague Director, the
Baroness Christiane Ramsay Pergola.
She had attended a meeting of the Board two days before her
death and news of her death was even more poignant and sad.
She served on our Board for more than six years and was an
important representative of the Scicluna family who have
been a loyal and steadfast shareholder for nearly 75 years.
We shall miss her presence and engaging personality.
We are pleased to welcome her daughter, Baroness
Justine Pergola, on to the Board of Directors. We extend
our deepest sympathy to her for her tragic loss and look
forward to her participation for the years to come.
Our sincere thanks also go to the management team
ably led by Norman Aquilina. They have worked well and
with great determination under dicult and challenging
circumstances and have produced much improved results.
I am also most grateful to my fellow Directors who have
always shown their commitment to the tasks and issues that
the Company has had to face.
And finally, a word of thanks to our legal advisors and
auditors, Messrs Mamo TCV and PWC respectively.
Louis A. Farrugia
Chairman
25 May 2022
3
ANNUAL REPORT
2021/22