For the year ended 31 January 2026

Simonds Farsons Cisk p.l.c.

Annual Report

2025/26

Annual Report for the year ended 31 January 2026

02. Chairman’s Statement

06. Board of Directors

07. Board Committees

07. The Farsons Foundation

08. Senior Management

09. Innovation and New Product Development

10. Brand Investment and Awards

12. Group Chief Executive’s Review

39. Financial Statements

40. Directors’ Report

46. Statement by the Directors on Non-Financial Information

60. Corporate Governance Statement

67. Remuneration Report

72. Statements of Financial Position

74. Income Statements

75. Statements of Comprehensive Income

76. Statements of Changes in Equity

78. Statements of Cash Flows

79. Notes to the Consolidated Financial Statements

109. Shareholder Information

110. Five Year Summarised Group Financial Information

111. Independent Auditor's Report

Simonds Farsons Cisk p.l.c.

CONTENTS

The past financial year has been one of the most significant and transformational periods in the Group’s recent history. During the year, the Board implemented several important strategic initiatives intended to strengthen the long-term positioning and focus of the Group’s beverage and food interests.

Foremost amongst these developments was the successful spin-off and separate listing of the Group’s food business under Quinco Holdings p.l.c. Following Shareholders’ approval obtained at the Annual General Meeting held in June 2025, Quinco Holdings p.l.c., was admitted to the Official List of the Malta Stock Exchange in October 2025, with shares subsequently distributed to shareholders of Simonds Farsons Cisk p.l.c., by way of a dividend in kind.

Shareholders who have retained their holdings since the Trident Estates p.l.c., spin-off in 2018 now own interests in three distinct publicly listed companies. Whilst these

companies continue to share common origins, governance principles, and shareholder structures, each is now better positioned to pursue its own strategic priorities and long- term growth opportunities under dedicated Boards and management teams.

Quinco Holdings p.l.c., has now been operating inde- pendently for several months under the chairmanship of Mr Norman Aquilina who possesses longstanding experience within the food business and wider Group operations.

The Group’s financial statements for the year accordingly reflect the food business as a discontinued operation up to the date of transfer. Shareholders should therefore take this structural change into account when comparing the Group’s performance with prior periods.

Turning to the Group’s continuing beverage operations, I am pleased to report another solid year of performance.

CHAIRMAN'S

STATEMENT

Group turnover from continuing operations increased by 4.6% to €106.5 million, compared to €101.8 million in the previous financial year. Operating profit increased from €15.6 million to €16.8 million, reflecting improved opera- tional efficiencies and stronger margins within the beverage business.

Profit after taxation from continuing operations amounted to €15.0 million compared to €17.0 million in the prior year. The reduction was entirely attributable to higher incidence of tax expense following the full recognition of certain long-standing investment tax credits which had supported major capital investment programmes undertaken by the Group over many years.

Profit after tax for the year, including discontinued opera- tions, also reflects the contribution of the food business up to the date of the spin-off, together with the accounting impact arising from the disposal and distribution of the food business to shareholders.

During the year, the Group continued investing in opera- tional efficiency, sustainability, and long-term infrastructure. Important projects completed during the year included the commissioning of a CO₂ recovery plant and the conversion of steam-generating boilers from light heating oil to Liquefied Petroleum Gas (LPG). These investments are expected to deliver both operational and environmental benefits through improved efficiency, enhanced security of supply, and reduced carbon emissions.

The Group also commenced an €11 million investment in a new state-of-the-art, robotically operated Automated Logistics Warehouse. Works are progressing according to schedule, and the facility is expected to be commissioned in Q4 2027.

At the same time, the Group is evaluating further strategic operational developments on land currently utilised for employee parking, trailer parking, and storage. Situated adjacent to Trident Park, this land is currently the subject of preliminary studies and conceptual master planning exercises being undertaken by Farsons and Trident Estates p.l.c., to assess both companies’ future requirements and development opportunities.

These studies remain at an exploratory stage and are in- tended to support the ongoing strategic evaluation process. No decisions have been taken in relation to any develop- ment scheme, transaction structure, funding arrangement, or implementation timetable, all of which remain subject to further studies, corporate approvals, and, where applicable, Board, shareholder and regulatory considerations.

As I write this statement, wars are being fought in Ukraine and the Middle East. Inevitably, these developments are disrupting the world economy, particularly the supply chains of essential products. Economic forecasts by leading observers point to a likely rise in inflation and a slowdown, with the possibility of a recession in the global economy. It is not yet clear how these events will affect the local economy.

Another important area of focus for the Board during the year has been leadership succession and the continued strengthening of the Group’s management structures. Several key appointments were made across the organisa- tion as part of the Group’s ongoing evolution and long-term strategic development.

Mr John Bonello Ghio was appointed Chief Commercial Officer with responsibility for the Group’s marketing and sales functions within the beverage business, whilst Mr Alistair Haber joined the Group in the newly established role of Chief Digital and Technology Officer to support the Group’s digital transformation initiatives. Mr Matthew Cuomo was appointed General Manager of Farsons Beverage Imports Company Limited, overseeing the expanding portfolio of imported Beers, Wines and Spirits.

The Group also continued strengthening its capabilities in sustainability, digitalisation, and commercial execution, through a number of further senior appointments, including Mr Philip Farrugia as Group Head of ESG Strategy and Business Services, together with Mr Brian Laudi, Mr Karl Bondin, and Mr Robert Galea in senior leadership roles across technology, marketing, and sales.

These changes also follow the retirement of Ms Susan Weenink Camilleri and Mr Pierre Stafrace. The Board express- es its sincere appreciation for their many years of dedicated service and valuable contribution to the Group, and extends its best wishes for a long and fulfilling retirement.

Our Human Resources function has also remained highly active across all levels of the organisation. We firmly believe that the long-term success of the Group depends funda- mentally on attracting, developing, and retaining, talented people. Continuous training, professional development, and the strengthening of internal capabilities, therefore, remain key priorities across the Group.

I would like to express my sincere gratitude to all employ- ees for their commitment, professionalism, and contribu- tion throughout another demanding and important year for the Group.

"During the year, the Board implemented several important strategic initiatives intended to strengthen the long-term positioning and focus of the Group’s beverage and food interests."

Following the establishment of Quinco Holdings p.l.c., and the appointment of Mr Norman Aquilina as Executive Chairman, the Board appointed Mr Michael Farrugia as Chief Executive Officer of Simonds Farsons Cisk p.l.c., with effect from 1 July 2026.

Michael has held a number of senior leadership roles within the Group over many years and has led several of the Group’s strategic, operational, and investment initiatives. His appointment represents an important milestone in the Group’s leadership succession planning, and reflects the Board’s confidence in the next generation of executive leadership.

As many shareholders are aware, Michael is my son. The Board was therefore particularly mindful of the governance considerations associated with this appointment. The deci- sion was taken following careful consideration of Michael’s experience, track record, and suitability for the role. I am confident that he will lead the business with commitment, professionalism, and a clear focus on the Group’s next phase of development.

Mr Norman Aquilina will be stepping down as Group CEO after twenty two years of service to the Group, including sixteen years in the role of Chief Executive Officer. During this period, the Group continued to strengthen its operations and execute a number of important strategic initiatives. We are pleased that Norman will continue contributing in his role as Executive Chairman of Quinco Holdings p.l.c. On behalf of the Board, I thank him sincerely for his invaluable service and wish him success in his new role.

The Board is pleased to have completed these important transitions in an orderly and timely manner whilst ensuring continuity, stability, and strong governance across the Group’s operations.

Time inevitably brings change, and it is with both gratitude and regret that I inform shareholders that Mr Roderick Chalmers will be retiring from the Board after 20 years of dedicated service. Roderick also served as Chairman of the Audit & Risk Committee and has been an invaluable member of the Board over many years. His professionalism, sound judgement, and wise counsel, have been greatly appreciated by both the Board and management. On behalf of all shareholders, I thank him sincerely and wish him continued good health and a long and enjoyable retirement.

I am very pleased to announce that Mr David Valenzia has been nominated to join the Board and succeed Roderick as Chairman of the Audit & Risk Committee. David served for many years as Senior Partner at PwC Malta and possesses extensive knowledge of both the local and international business environments. He also knows the Group well, having previously served as audit partner to Farsons for a number of years.

Mr David Valenzia, together with Dr Max Ganado, will be proposed for appointment at the forthcoming Annual General Meeting. Their nominations are uncontested.

In conclusion, I believe the Group has once again delivered a strong performance whilst simultaneously undertaking major structural, strategic, and leadership transitions. We have strengthened the foundations for future growth across our beverage and food interests, whilst continuing to invest confidently in the long-term future of the business.

Finally, shareholders will also note the record dividend being recommended by the Directors. The Group’s liquidity position remains strong, and we are pleased to place this recommendation before shareholders for approval at the forthcoming Annual General Meeting.

I would also like to take this opportunity to thank all our stakeholders, including our employees, shareholders, cus- tomers, suppliers, and business partners for their continued trust, support, and commitment to the Group.

I also extend my gratitude to my fellow Directors for their ongoing contribution, as well as our legal advisors Mamo TCV and our Auditors Deloitte Audit Limited.

In particular, I wish to record my sincere gratitude to Norman Aquilina, this being his last AGM of Simonds Farsons Cisk p.l.c., for his dedication to the role of CEO for the last sixteen years. He took on the responsibility with enthusiasm and delivered encouraging results over the same period. Thank you Norman.

Louis A. Farrugia Chairman 27 May 2026

"We have strengthened the foundations for future growth across our beverage and food interests, whilst continuing to invest confidently in the long-term future of the business."

CHAIRMAN'S STATEMENT continued

1. Mr Louis A. Farru gia – Chairman

2. Mr Marcantonio Stagno d'Alcontres – Vice Chairman

3. Ms Marina Hogg

4. Mr Roderick Chalmers

5. Mr Michael Farrugia

6. Dr Max Ganado

7. Mr Matthew Marshall

8. Mr Neil Psaila

9. Ms Nadine Magro – Company Secretary

BOARD OF DIRECTORS

Simonds Farsons Cisk p.l.c.

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Board of Directors

Mr Louis A. Farrugia – Chairman

Mr Marcantonio Stagno d'Alcontres – Vice Chairman

Mr Roderick Chalmers

Mr Michael Farrugia

Dr Max Ganado

Ms Marina Hogg

Mr Matthew Marshall

Mr Neil Psaila

Ms Nadine Magro – Company Secretary

Mr Norman Aquilina

– Group Chief Executive

Mr Michael Farrugia

– CEO Designate (from 1 October 2025)

Ms Anne Marie Tabone

– Group Chief Financial Officer

Mr John Bonello Ghio

– Chief Commercial Officer (from 1 February 2026)

Mr Eugenio Caruana

– Chief Operating Officer

Mr Karl Bondin

– Head of Marketing (from 1 August 2025)

Mr Chris Borg Cardona

– Group Head of Logistics

Mr Philip Farrugia

– Group Head of ESG Strategy & Business Services (from 1 November 2025)

Mr Robert Galea

– Head of Sales (from 1 August 2025)

Mr Tonio Mifsud Bonnici

– Group Head of HR

Mr Pierre Stafrace*

– General Manager, FBIC (up to 2 July 2025)

Ms Susan Weenink Camilleri*

– Head of Sales and Marketing (up to 31 August 2025)

From left: Mr Robert Galea, Mr Karl Bondin, Mr Eugenio Caruana, Ms Anne Marie Tabone, Mr Norman Aquilina, Mr Michael Farrugia, Mr Philip Farrugia, Mr John Bonello Ghio, Mr Tonio Mifsud Bonnici, Mr Chris Borg Cardona

* Not present in photo

SENIOR MANAGEMENT

INNOVATION AND NEW PRODUCT DEVELOPMENT

Navigating challenges, delivering results

This has been a year of significant market shifts, requiring careful steering through challenges. This necessitated ongoing adjustments to our strategic reach in response to evolving changes and demands. Notwithstanding the headwinds, the Group has demonstrated competitive resilience, achieving continued growth.

While macroeconomic conditions have been generally favourable and stable, the market environment remains challenging, and we cannot take our sustained improve- ments in results for granted. Indeed, it is incumbent upon us to address the competitive challenges with increased vigour and determination.

The constantly evolving market landscape, particularly with respect to the transformation of the retail sector, continued to test our resilience and overall competitiveness with supermarkets continuing to increase their market presence. This has brought about some welcoming innovation, but has also raised some concerns on their sustainability, particularly if this development continues to persist.

Beyond this, a combination of contrasting consolidation and proliferation on sources of supply have further intensified competition, impacting the level of business within both the take-home and on-premise segments.

Despite ongoing market pressures, I am pleased to report that our Group has held its ground and continued to make significant strides forward, driven by our relentless focus on brand strength, operational excellence, and customer-centric reach to market. Our results are a testament to the agility of our business, and resilience of our workforce, along with a reflection of the trust and loyalty of our customers.

In delving into the key highlights of our performance, it is important to place our results within the broader perspec- tive of these market realities, both in the short- and long- term, whilst at the same time recognising the strategies that have enabled us to thrive in a crowded and dynamic market which is increasingly focused on consumer value, with no signs of this trend slowing down.

The Group’s results for the year reflect a significant structural transition in both its reporting framework and the composition of its operations. The beverage segment now represents the Group’s core continuing activity and there- fore reflects the normal trading performance of the Group over the full twelve months of the financial year. In contrast, the food segment was spun off in October 2025 and is consequently presented as a discontinued operation, with the reported results reflecting only the first eight months of the financial year.

GROUP CHIEF EXECUTIVE’S REVIEW

The beverage business continued to deliver consistent and encouraging growth in turnover, achieving a further increase of 4.6% over the level exceeding €100 million recorded in the financial year ended January 2025. The Group continues to record growth across both the parent company and its subsidiaries, underlining the strength, depth, and resilience of the diversified portfolio offered to its customer base.

Export revenues also continued to expand steadily across a number of international markets, reflecting the Group’s sustained efforts to broaden its geographical footprint and deepen relationships with overseas distributors and bottling partners. The performance achieved during the year confirms the increasing recognition and acceptance of the Group’s portfolio beyond its domestic market.

The growth in regular trading profitability of €16.8 million vs the previous year of €15.6 million was achieved despite an increasingly challenging cost environment, particularly in re- lation to logistics operations and rising human capital costs. Nevertheless, the increase in turnover translated into an improved trading profitability margin of 15.8%, compared to 15.3% in the previous year. This enhancement in profitability was driven by disciplined cost management in procurement, careful containment of overheads, and strengthened credit control processes, which together resulted in favourable movements in expected credit loss provisions.

The Company’s results also reflect the distribution of dividends net of tax amounting to €8.3 million, effected by the food subsidiaries prior to their acquisition by Quinco Holdings p.l.c. This distribution represents the accumulation of profits generated by the food segment over a number of successful years and constitutes a one-off distribution recognised solely within the Company’s results.

The Group’s food segment, for the reported eight-month period prior to the spin-off, also recorded increased revenue levels, continuing the growth trajectory experienced in recent years. Profitability for the period remained broadly in line with the rate of return achieved in the corresponding period of the previous year.

The Group’s results also recognise the substantial value created within the food business, an operation that the Group has developed and expanded over more than three decades. In October 2025, this business was successfully spun-off to all SFC shareholders through the distribution of the shares in the newly listed entity, Quinco Holdings p.l.c., previously held by SFC. This strategic initiative was undertaken to allow the food business to operate within a dedicated and focused structure that is better positioned to pursue its next phase of growth.

The establishment of a standalone listed entity provides the Board of Directors and management of Quinco Holdings p.l.c. with enhanced operational focus, improved capital market visibility, and greater strategic flexibility to accelerate develop- ment within an increasingly dynamic and competitive market environment, particularly within the evolving landscape of importers and retailers. The Group takes considerable pride in having nurtured and developed this business over many years prior to reaching this important milestone.

As part of this transaction, the Group recognised a gain of €21.9 million, reflecting the significant value built within the food operations over time. This gain represents a non-recur- ring item arising from the spin-off transaction, which was effectively returned to shareholders through the spin-off mechanism, and should therefore not be considered part of the Group’s underlying operating performance.

The spin-off represents a defining strategic milestone for the Group. While Quinco Holdings p.l.c. now continues the development of the food business as an independent entity, the Group remains firmly focused on strengthening and expanding its beverage operations, which now constitute its principal continuing business and the primary platform for its future growth.

OPERATIONS AND LOGISTICS

OPERATIONS

To further strengthen the Company’s commitment to re- ducing its environmental footprint, two major initiatives, the commissioning of the CO₂ recovery plant and the transition of our steam generating boilers to Liquefied Petroleum Gas (LPG), have been implemented as part of our broader sustainability agenda.

CO₂ Recovery Plant

In line with our long term sustainability strategy, and the need to strengthen operational resilience, the Company has recently successfully commissioned a new CO₂ recovery plant, designed to capture the CO₂ generated during beer fermentation.

Originally initiated in 2020 with the aim of reducing reliance on imported beverage grade CO₂, which is both costly and logistically challenging to secure, particularly during the peak summer months, the €2 million facility, delayed only briefly by the COVID-19 pandemic, was completed in Q3 2025 and is designed to recover 275 kg/h of CO₂ from beer fermen- tation. The whole process includes temporary gas storage, multi-stage purification, and liquefaction, supported by the installation of an additional 66 tonne cryogenic storage tank, capable of storing the liquified gas at very low temperatures.

The CO₂ plant now enables the recovery of approximately 500 metric tonnes of CO₂ annually covering around half of the brewery’s total needs, while meeting the stringent spec- ifications required by our key partners including PepsiCo and Carlsberg. This investment strengthens operational resilience, reduces import dependency, enhances cost efficiency, and significantly improves the organisation’s sustainability performance.

LPG Transition

Concurrently, a project is underway to transition our steam generating boilers to Liquefied Petroleum Gas (LPG), a cleaner alternative to Light Heating Oil (LHO) and one that significantly reduces sulphur emissions and particulate matter.

A dedicated bunker and a 10,000 litre pressurised LPG storage vessel have been installed, along with all required pipework and safety systems. The LPG will initially be stored in liquid form under pressure, then vaporised and supplied to the boilers, where it is combusted to generate steam, which in turn is distributed across all production processes. Civil works were completed at the end of the last financial year and the plant was tested and fully commissioned in the first month of the new financial year.

CONSTRUCTION OF A NEW AUTOMATED LOGISTICS WAREHOUSE

Our commitment to circularity remains central to our operations and logistics strategy, particularly in handling and promoting refillable bottles and kegs across trade and consumer channels. To strengthen this model, construction of a new fully Automated Logistics Warehouse began in September 2025. Designed to centralise storage of returnable and refillable products, currently fragmented across multiple sites, and introduce automated inspection, storage and line feeding capabilities, the facility will offer 7,500 pallet positions and is scheduled for completion and commissioning by Q4-2027. Once fully operational, this centralised facility will contribute to improving quality standards, internal controls and overall productivity levels. Solar power generation will further support our carbon neutral operations.

Photomontage of finished warehouse

GROUP CHIEF EXECUTIVE’S REVIEW continued

Logistics

The growth in production and sales volumes during the year resulted in a substantial increase in the movement of finished goods across our warehousing and distribution operations. Despite this heightened activity, the logistics teams maintained strong operational efficiency and consist- ently upheld high service levels throughout the period.

Rising costs continued to present challenges, driven primarily by storage and marshalling space limitations, and increasing customer expectations for more frequent deliver- ies. Increased road traffic and congestion, and reduced access for larger vehicles in several localities, required more trips using smaller trucks to maintain service reliability. Additionally, to protect product availability amid volatile lead times, higher inventory levels were held, placing further pressure on space and increasing handling costs.

A key milestone this year was the successful implementation of the new online Transport Management System, which has delivered significant improvements in routing efficiency, processing times, and operational visibility across distribution activities. This platform now serves as a foundation for the next phase of our digital transformation, enabling future initiatives such as paperless warehousing and delivery processes, enhanced customer order experience tools, and increased automation. To support this transition, the Company engaged specialist consultants to advise on expanding storage and marshalling capacity and further optimising workflows within an increasingly digital operating environment.

Fleet modernisation continued steadily during the year, with new vehicles added and additional units scheduled for delivery by mid-2026. This will complete the transition to a fully Euro 6 compliant fleet, supporting our ongoing sustainability objectives and further reducing the environ- mental impact of our operations.

Together, these investments will significantly reduce emissions, enhance energy and operational efficiency, and improve our overall green and quality credentials, position- ing the organisation for long-term resilience across all areas of operations, and facilitate responsible growth .

"A key milestone this year was the successful implementation of the new online Transport Management System, which has delivered significant improvements in routing efficiency, processing times, and operational visibility"

Human Resources

The Farsons Group continues to position Human Resources as a strategic enabler of organisational success, particularly in the context of Malta’s increasingly challenging labour market. The HR function remains focused on ensuring strong talent and skills alignment by placing the right people in the right roles, fostering productivity, and addressing employee needs through fair compensation, career development, and safe working conditions. To better support these aims, the Company is actively updating and revising its HR policies and procedures to better reflect current market realities and enhance employee engage- ment, satisfaction, and retention.

A key initiative undertaken during the year was a com- prehensive job evaluation process, beginning with the revision of all job descriptions to ensure clarity, fairness, and alignment with today’s organisational and market expectations. This evaluation framework strengthens transparency, supports meaningful performance and progression conversations, and ultimately contributes to higher employee engagement, improved performance, and enhanced customer experience.

Recognising the importance of continuous learning in a rap- idly evolving business environment, the Company has invest- ed in educational subscriptions that provide employees with cost-effective, ongoing access to curated training content across technical, leadership, and professional domains. This approach supports scalable upskilling, improved adaptabil- ity, and stronger alignment between workforce capabilities

and strategic objectives. Management remains committed to ensuring these learning opportunities are integrated within performance and development processes.

The Farsons Group continues to strengthen its employer value proposition through initiatives such as increased and improved social media content and visibility, educational outreach, internal promotions, and employee recognition programmes. These efforts are complemented by a com- mitment to employee empowerment and a strong focus on induction programmes that support seamless integration into the organisation.

Diversity remains a recognised source of organisational strength, with the workforce growing increasingly varied across gender, age, ethnicity, culture, religion, disability, sexual orientation, educational backgrounds, and thinking styles. We view diversity and well-being as interconnected pillars of performance, where inclusion reinforces well-being, and well-being in turn enables employees to contribute more meaningfully. The Company continues to invest in holistic well-being programmes, psychological safety, and engaging events that promote a sense of purpose, satisfac- tion, and overall organisational success.

Overall, the Farsons Group’s HR strategy is centred on creat- ing an engaged, skilled, diverse, and empowered workforce, capable of supporting the organisation’s long-term goals while fostering a positive, inclusive, and growth-oriented workplace culture.

GROUP CHIEF EXECUTIVE’S REVIEW continued

Information Technology and Digitalisation

In a business environment shaped by increasing complexity, regulatory demands, and rising expectations around speed and reliability, information technology continues to play a central role in enabling operational excellence and organisa- tional resilience. Over the past year, the Group’s IT function has remained focused on strengthening core systems, embedding digital capabilities across key operations, and ensuring that technology supports the business in a secure, scalable, and sustainable manner.

A major area of focus has been the ongoing optimisation and extension of our core Enterprise Resource Planning (ERP) platform. Efforts have centred on improving data quality, enhancing traceability, and better integrating operational processes across functions. In parallel, targeted enhancements to the Warehouse Management System (WMS), together with the continued rollout of the Transport Management System (TMS), have improved coordination across logistics and distribution, laying solid digital founda- tions for future efficiencies.

Progress has also continued on customer-facing and commercial platforms. Following the renewal of our Customer Relationship Management (CRM) solution and associated B2B capabilities, the emphasis during the year has been on stabilisation, governance, and practical adoption. These platforms now provide improved visibility, more structured data, and a stronger base for future digital commerce initiatives, while maintaining a firm focus on control and reliability.

Alongside application development, significant effort has been dedicated to strengthening the Group’s IT infrastruc- ture and cybersecurity posture. Continuous upgrades to network, server, and security environments, have enhanced resilience and business continuity, while stricter access management and improved supplier connectivity have helped reduce operational and cyber risks. Compliance with regulatory and audit requirements, including evolving cyber- security obligations, remains a core pillar of IT governance.

Equally important has been ongoing investment in people, processes, and collaboration. The IT function has worked closely with business stakeholders to resolve system chal- lenges, streamline processes, and support cross-functional initiatives. Recruitment, training, and knowledge-sharing efforts, have continued to build internal capability and ensure continuity as the organisation evolves.

The launch of the newly revamped corporate website, www.farsons.com , marked a further milestone in enhancing the Group’s digital presence and stakeholder engagement. With a more contemporary design and improved navi- gation, the platform provides a more intuitive experience and clearer insight into the Group’s portfolio, heritage, and ongoing developments.

As the Group advances its broader transformation journey, IT continues to act as a key enabler, providing the stable platforms, trusted data, and secure systems required to support growth, efficiency, and long-term value creation.

SUSTAINABILITY

Sustainability remains a core pillar of the Group’s long-term strategy, shaping how we operate, invest, and plan for future resilience. It is embedded in our approach to responsible business management, ensuring that growth is achieved ethically, efficiently, and in line with stakeholder expectations.

Over the past year, the Group strengthened the integration of sustainability across operations and governance. Our efforts focused on enhancing environmental performance, improving resource efficiency and reinforcing oversight, while maintaining a pragmatic approach aligned with the scale and nature of our business.

Environmental sustainability continues to be a priority area. Ongoing initiatives to improve energy efficiency, reduce waste and optimise resource use, form part of a broader commitment to lowering our environmental footprint and supporting more circular operating practic- es. Investments in systems, processes and data capabilities are enabling sustainability considerations to be embedded in everyday decision-making rather than treated as parallel initiatives.

Our strategy also reflects evolving consumer expectations, including the development of products and packaging that encourage more responsible purchases and consumption. This aligns innovation with societal trends while remaining consistent with our values and long-term responsibilities.

We recognise that advancing sustainability requires collaboration beyond our direct operations. Through active participation in sector initiatives, including our involvement in the national beverage producers’ association and BCRS, we continue contributing to industry efforts that improve recycling performance, promote responsible packaging and support national sustainability objectives.

Looking ahead, sustainability will remain central to the Group’s strategic direction. We are committed to steady, measurable progress, deeper operational integration, and continued stakeholder collaboration to ensure responsible practices reinforce the Group’s long-term resilience and reputation.

"Sustainability remains a core pillar of the Group’s long-term strategy, shaping how we operate, invest and plan for future resilience"

GROUP CHIEF EXECUTIVE’S REVIEW continued

The Local Beverage Market

The local beverage market continues to operate in a chal- lenging environment, shaped by rising economic pressures, shifting consumption patterns, intensified competition, and stricter regulatory enforcement. Despite these headwinds, Farsons strengthened its market presence, delivering volume and value growth across all categories. Sustained investment in marketing and brand communication, product innovation, and ongoing operational improvements, enabled the Group to maintain a strong competitive position and respond effectively to evolving market dynamics.

Industry performance was supported by population growth, a buoyant tourism sector, and an expanding retail landscape, all of which contributed to overall market volume. These trends, however, also elevated expectations around product quality, service standards, and responsiveness to competitor activity. At the same time, inflationary pressures and tighter household budgets fuelled demand for lower-cost alternatives, and stimulated aggressive pricing strategies across the sector, intensifying the battle for both shelf space and consumer mind space.

Consumer habits continued to evolve rapidly. More informed purchasing decisions, together with a continued focus on health and wellness, drove increased demand for zero-sugar soft drinks, and low- or no-alcohol alternatives across beer, wine and spirits categories. Expectations around sustainable packaging and reduced plastic usage also continue to rise, reflecting broader environmental

awareness and shaping our product and packaging innovation strategy and portfolio choices.

Notwithstanding these competitive pressures, our flagship brands, Cisk and Kinnie, delivered strong performances across all variants, further consolidating their leadership positions. Continued investment in brand building, consumer engagement, product innovations, and uncompromising quality, remains central to attracting new consumers while deepening loyalty within our established customer base.

"The local beverage market continues to operate in a challenging environment, shaped by rising economic pressures, shifting consumption patterns, intensified competition, and stricter regulatory enforcement"

Beers

The robust Cisk portfolio delivered a strong performance across all channels. The nationwide Cisk Frisk campaign, extended to Cisk Lager and Cisk Excel, reinforced the brand’s core competitive advantage of freshness. Innovation continued to shape the portfolio, with the introduction of Cisk Chill Melon Mix broadening the flavour offering of the vastly popular Cisk Chill range.

Cisk 0.0 achieved double-digit growth and strengthened its position as market leader in the developing non-alcoholic beer segment. The Zero? Zero. campaign further enhanced Cisk 0.0’s relevance by positioning the brew as a versatile choice for occasions traditionally associated with alcoholic beer. Cisk Strong also recorded double-digit growth, consolidating its leadership within the high-alcohol category.

The Farsons Classic Brews portfolio remained resilient within a market increasingly influenced by evolving trends in craft beers. Supported by the You Can’t Rush This campaign, Farsons Blue Label maintained a solid position despite intensified competition. Farsons Green Hop IPA continued its upward trajectory following its more recent launch on draught and in 50cl cans, expanding visibility and availability across retail, pubs and bars.