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Full-Year Results

Jonathan Falzon

April 11, 2025

11 April, 2025
6 min read
11 April, 2025
6 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 11 April 2025, M&Z plc published its Annual Report and Financial Statements for the year ended 31 December 2024. The comparative revenue and operating expenses for 2023 were reclassified to conform with the current year’s presentation format.

Revenue remained practically unchanged at just under €30 million as the company maintained a stable performance across a wide range of renowned fast-moving consumer goods.

On the expenditure side, operating costs (net of other operating income) fell by 1.9% to €26.9 million, reflecting the absence of the loss allowance regarding trade receivables that was recognised in 2023. As a result, operating profit (EBIT) rose by 21.5% to €3.47 million compared to €2.86 million in 2023 and the EBIT margin improved to 11.6% compared to 9.6% in the previous year. Excluding depreciation and amortisation charges, EBITDA increased by 14.1% to €4.40 million which translates into an EBITDA margin of 14.7% (2023: 12.9%).

After accounting for net finance costs of €0.29 million and tax charges of €1.16 million, the net profit for the year amounted to €2.02 million which is 14.6% higher than the previous year and translates into a return on equity of 24% (2023: 22%).

The Statement of Financial Position as at 31 December 2024 shows that total assets fell by 13% (or €2.6 million) to €16.9 million reflecting marginal reduction across virtually all line items. Likewise, total liabilities decreased by 15% (or €1.5 million) to €8.3 million, which includes borrowings of €2.71 million, lease liabilities of €1.37 million and preference share capital of €1.25 million. Overall, the company’s equity base advanced by 5.3% (or €0.4 million) to €8.58 million, which includes the recognition of a treasury share reserve attributed a negative value of €0.30 million, which is the expense related to the buyback of 500,000 ordinary shares in November 2024.

Dividend

The Directors of M&Z are recommending a final net dividend per share of €0.0162 to all shareholders as at close of trading on 28 May 2025, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 4 June 2025. The final dividend is expected to be paid by not later than 27 June 2025.

Coupled with the net interim dividend per share of €0.009 paid in September 2024, the total net dividend per share for the year amounts to €0.0252, which is 12.7% lower than the previous year and translates into a payout ratio of 56% (2023: 74%).

Share Buyback Programme

The Directors will be proposing a new share buyback programme for the consideration of the shareholders at the upcoming AGM. M&Z will be sending an explanatory circular to all shareholders prior to the AGM containing all the information relating to the proposed buyback programme.

Outlook

In their commentary, the Directors explained that in the current financial year, the company is anticipating modest growth in revenues, despite the uncertainties in the market landscape. The company is also actively implementing rigorous cost-saving initiatives to improve overall efficiency and deliver greater value across all sectors of the business.

The Directors explained that in addition to continuously actively sourcing key suppliers, another growth strategy that has been identified is the extension of the brand portfolio through several successful mergers and acquisitions. This activity has been key in driving M&Z into new product segments, allowing it to increase and diversify its product range. The Board continues to regard this strategy as a key growth driver to penetrate new market segments and to continue to strengthen the company’s position within existing segments.

The Board stated that a balanced approach to growth, efficiency, and shareholder returns will underpin the company’s success in navigating the upcoming challenges and opportunities in the market. The Directors also reiterated the commitment to a policy of sustaining stable and secure dividend distributions, commensurate to market conditions.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 11 April 2025, M&Z plc published its Annual Report and Financial Statements for the year ended 31 December 2024. The comparative revenue and operating expenses for 2023 were reclassified to conform with the current year’s presentation format.

Revenue remained practically unchanged at just under €30 million as the company maintained a stable performance across a wide range of renowned fast-moving consumer goods.

On the expenditure side, operating costs (net of other operating income) fell by 1.9% to €26.9 million, reflecting the absence of the loss allowance regarding trade receivables that was recognised in 2023. As a result, operating profit (EBIT) rose by 21.5% to €3.47 million compared to €2.86 million in 2023 and the EBIT margin improved to 11.6% compared to 9.6% in the previous year. Excluding depreciation and amortisation charges, EBITDA increased by 14.1% to €4.40 million which translates into an EBITDA margin of 14.7% (2023: 12.9%).

After accounting for net finance costs of €0.29 million and tax charges of €1.16 million, the net profit for the year amounted to €2.02 million which is 14.6% higher than the previous year and translates into a return on equity of 24% (2023: 22%).

The Statement of Financial Position as at 31 December 2024 shows that total assets fell by 13% (or €2.6 million) to €16.9 million reflecting marginal reduction across virtually all line items. Likewise, total liabilities decreased by 15% (or €1.5 million) to €8.3 million, which includes borrowings of €2.71 million, lease liabilities of €1.37 million and preference share capital of €1.25 million. Overall, the company’s equity base advanced by 5.3% (or €0.4 million) to €8.58 million, which includes the recognition of a treasury share reserve attributed a negative value of €0.30 million, which is the expense related to the buyback of 500,000 ordinary shares in November 2024.

Dividend

The Directors of M&Z are recommending a final net dividend per share of €0.0162 to all shareholders as at close of trading on 28 May 2025, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 4 June 2025. The final dividend is expected to be paid by not later than 27 June 2025.

Coupled with the net interim dividend per share of €0.009 paid in September 2024, the total net dividend per share for the year amounts to €0.0252, which is 12.7% lower than the previous year and translates into a payout ratio of 56% (2023: 74%).

Share Buyback Programme

The Directors will be proposing a new share buyback programme for the consideration of the shareholders at the upcoming AGM. M&Z will be sending an explanatory circular to all shareholders prior to the AGM containing all the information relating to the proposed buyback programme.

Outlook

In their commentary, the Directors explained that in the current financial year, the company is anticipating modest growth in revenues, despite the uncertainties in the market landscape. The company is also actively implementing rigorous cost-saving initiatives to improve overall efficiency and deliver greater value across all sectors of the business.

The Directors explained that in addition to continuously actively sourcing key suppliers, another growth strategy that has been identified is the extension of the brand portfolio through several successful mergers and acquisitions. This activity has been key in driving M&Z into new product segments, allowing it to increase and diversify its product range. The Board continues to regard this strategy as a key growth driver to penetrate new market segments and to continue to strengthen the company’s position within existing segments.

The Board stated that a balanced approach to growth, efficiency, and shareholder returns will underpin the company’s success in navigating the upcoming challenges and opportunities in the market. The Directors also reiterated the commitment to a policy of sustaining stable and secure dividend distributions, commensurate to market conditions.