Group reports 14% rise in interim profits

 The Malta Stock Exchange-listed Farsons Group yesterday said it to invest another €10 million in its Mriehel facility, adding to the already announced €27 million investment in its new beer packaging facility, due to become operational in April 2016, and the €40 million investment in the Farsons Business Park, which is due to open in 2020.

The fresh investment announced yesterday will involve plans to expand its logistics operations and warehousing capabilities, alongside a new office space development to house its administrative employees. 

The investment, together with related capital expenditure, is expected to amount to €10 million and is scheduled to commence in January 2016 and completed within a two-year period. 

And the Group has reason to feel bullish, having yesterday reported steady growth and a profitable performance for the six months ending 31 July 2015.  

The Group reported that turnover had exceeded €44 million, an 8% increase over the comparative period last year, while profits after taxation for the six-month period amounted to €4.6 million - a significant increase of 14% over last year's already record figure.

In reviewing the performance of the Group's business, Farsons Group Chief Executive Norman Aquilina yesterday observed how, "The market remains highly competitive, with constant pressures on volumes and margins.  Nonetheless, the beverage business and the franchised food operations in particular continued to deliver a resilient performance.

"While efficiency improvements through investment, technology, innovation and cost containment remain ongoing, exports growth will continue to be an area of focus in line with the group's strategic vision."

The strong performance of the local economy, the growth in tourist arrivals and expenditure, the successful marketing of the beer portfolio and the volume growth in imported beverages were all factors that also contributed to the positive results achieved during the first six months of the company's financial year.

Group's Chairman Louis A. Farrugia referred to the 29 May company announcement that planning applications for the development of the Farsons Business Park had been submitted to the Malta Environment and Planning Authority, commenting: "Further detailed designs, analysis and specifications have since been undertaken with the project being set for approval by the next annual general meeting. 

"The board is also considering the various funding options and is effectively planning the execution of the restructuring of the group.  We are experiencing another exciting phase in our history which we believe will result in further growth of the Farsons group".