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By a staff reporter
The beverage and food company, Farsons, quoted on the local stock exchange, has announced strong financial results.
This company is the first to have its financial year closing in 2007. Farsons has succeeded in increasing its turnover by 2% to reach Lm26.7 million. Moreover, despite the increase in revenue, it decreased its cost of sales and the administrative, distribution and selling expenses.
Overall it registered an operating profit of Lm1.3 million which is four times more that that of last year. Farsons continued to decrease its interest costs and did not have a repeat of Investment income registered in 2005/6 when it sold off one of its properties. The management took a decision to discontinue operations that decreased the share of losses from these activities and so impacted positively the results. Overall, Farsons doubled its profits before tax to reach a few thousands shy of a Million Malta lira mark.
The Farsons Group has reached these much improved profit results when it is nearing completion of the Lm10.6 million investments in a new soft drink packaging and logistics hall. This site will house the operations of two of its subsidiaries which will in turn release their present site for development. Moreover, the group has reported encouraging export results.
Farsons has total assets of nearly Lm40 million of which 40% are financed from shareholders’ funds. This year the group succeeded in generating more cash from its operations and despite increasing the cash used for investing and that earned from financing, it improved its end of year cash figure.
Currently, Farsons is trading at a price to earnings ratio of 25, and with a Net Asset value of 62cents is equivalent to a price to book value of 1.37 times.
It is amazing to observe how the above average temperatures registered in the last summer and winter had so much impact on the financials of this leading beverage company. This Malta owned company is a model employer and has a management with high entrepreneurial spirit that adopted a policy to prepare adequately for higher competition from imported products. It improved its own products and distribution network and seeks export opportunities.
The Directors had declared an interim dividend which together with the final dividend is equivalent to half a million Malta lira being a yield of 2.39%. This Group has constantly continued to return funds to its shareholders even in tougher times and with an earnings per share of 7cents 9 mils has positive results for one of the small caps quoted on the Malta Stock Exchange. |
