2008 was a tough year for Simonds Farsons Cisk, but the group is expected to return to healthy profitability levels, chief executive officer Louis A Farrugia reported to shareholders at the group’s recent 62nd annual general meeting.
After a difficult 2008, characterised by a number of non-recurrent items and substantial increases in the cost of raw materials and utility costs, Farsons’ profitability is expected to improve as a result of remedial measures undertaken to manage costs and further enhance efficiency and competitiveness.
Mr Farrugia also referred to the construction of a new €12,500.000 Brew House as the final phase of the 1990s’ master plan to renew its total plant and machinery. He told shareholders that planning design work and project management preparation are underway and a Mepa application will be submitted shortly for a permit to construct it, as well as a further floor and offices on top of the new Logistics Office Block. The decision on whether to start the project will be taken later this year.
He commented, “Trading conditions remain challenging. Group turnover has reduced marginally compared to the same period last year, but the various measures of cost containment taken by management have made up for the shortfalls in revenues, and to date, targeted results are close to being attained. Subject to the performance of the early summer month sales, we remain optimistic that the operational profit for the six months to 31 July 2009 will be better than that reported for the same period last year.”
Also addressing shareholders, group chairman Bryan A. Gera explained how the group’s turnover had reached e66.4 million and that the group’s profit before tax amounted to €895,000.
“Our EBITDA (earnings before interest, tax, depreciation and amortisation) remains strong,” Mr Gera confirmed.
The annual general meeting approved the Board’s recommendation of a total dividend of e1,000,000. Shareholders also endorsed the Board’s proposal regarding the allotment of one bonus share for every six shares held.