This week, the Farsons Group announced much-improved profitability in its interim results to 31 July 2009. The Group turnover declined by 4.3 per cent to reach U33,499,000 over the comparative period last year, but profit for the period for the Group increased 84 per cent from U982,000 in 2008 to U1,807,000. This improvement was achieved despite the absence of any profits from the disposal of property.

The fall in turnover largely occurred in the beverage importation segment and was primarily attributable to the reduction of excise duties on spirits that became effective on 1 January 2009. Sales of locally produced beverages also declined as a result of a reduction in the number of tourists visiting Malta.

Despite the fall in Group turnover, margins were positively impacted by the reduction in the costs of certain raw materials, the attainment of targeted production efficiencies and the effect of various cost containment measures implemented over the period. The SFC board of directors is confident that such initiatives will be maintained for the foreseeable future and that more opportunities exist for enhancing profitability levels further.

“It has been a tough period because of the impact of the downturn in tourism and in the economy in general. However, Farsons has been resilient in these market conditions as a result of a determination to be more cost-effective and improve productivity. An invigorated management team, led by designate chief executive officer Norman Aquilina, is also producing the desired results,” said Group chief executive Louis A. Farrugia.

The SFC board also approved an interim dividend of U0.01 per share amounting to U300,000 out of tax exempt profits.