On 20 April 2011, Simonds Farsons Cisk plc published its financial results for the year ended 31 January 2011. The Preliminary Profit statement shows a substantial 30% improvement in pre-tax profits to €4.1 million from €3.1 million registered in the year ended 31 January 2010 as turnover rose by 28% to €67.4 million. The Group explained that the jump in profitability was due to increased international trading activities resulting in export sales, an increase in sales of beer and imported beverages on the local market, lower cost of raw materials, overhead cost containment and improved productivity throughout its operations. This led to a 7.4% rise in the Group’s EBITDA to €10.9 million. The Group explained that the improvement in earnings also significantly helped its cash flow. Simonds Farsons Cisk stated that during the year under review construction began on the new €14 million brewhouse, laboratory and water treatment facilities. This project is expected to be completed by May 2012.
The Directors recommended a final net dividend of €0.0533 per share subject to approval at the next Annual General Meeting scheduled to be held on 23 June 2011. Shareholders as at close of trading on 19 May will be eligible for this dividend. Following the net interim dividend of €0.0133 per share paid in October 2010, the total net dividend with respect to the year ended 31 January 2011 is of €0.0666 per share.
Commenting on the outlook for the current financial year, the Directors believe that the local economy will undoubtedly be influenced by the current events and uncertainties surrounding the Mediterranean and North African front, but at this stage it looks like consumer confidence and tourist arrivals are at normal levels. The Directors explained that the industry is being faced with inflationary pressures as a result of increases in the cost of malt, PET reforms and energy costs and stated that in this very competitive scenario that Farsons operates in, it is not possible to pass on these increases to consumers. The Group however remains confident that notwithstanding the economic and geopolitical uncertainties, its business model remains robust as long as it is able to implement strategies that exploit its strengths.
Download a copy of the Simonds Farsons Cisk plc Preliminary Profit Statement for the year ended 31 January 2011.