On 26 September, Simonds Farsons Cisk plc published its half-year results covering the six months ended 31 July 2012. The results show a 9.7% increase in turnover to €39.58 million mainly reflecting the growth in the ‘Brewing, production and sale of branded beers and beverages’ as well as the ‘Importation, wholesale & retail of food and beverages’. The Directors attributed this growth in revenue to a strong performance of the company-owned brands (namely Cisk and Kinnie), increased volumes through the beverage importation arm, product innovation as well as record tourist numbers which offset the reported slowdown in the export business.
Cost of sales rose by 9.5% to €24.6 million in line with the increased business activity leading to a gross profit of just below €15 million with the gross profit margin relatively unchanged at 37.8%.
Other operational expenses only increased by 1.9% to €10.2 million given the improved efficiencies and the continuous efforts to contain overhead costs. This resulted in a 32.9% jump in operating profits to €4.7 million. After accounting for interest costs of €0.7 million and a tax charge of €0.2 million, the Group’s profit for the period under review amounted to a record €3.78 million representing a 45% rise over the previous comparable figure.
The Directors declared an unchanged interim net dividend of €0.0133 to all shareholders as at close of trading on Tuesday 2 October. This dividend will subsequently be paid on Friday 19 October.
The Directors believe that the Group is well positioned and structured to continue to face the prevailing challenges present in the market in which it operates. Nonetheless, the continued transformation of the business into an even more robust and resilient one remains a priority. The recently inaugurated brewhouse will contribute further towards improving the Company’s brewing capabilities, production efficiency levels and overall competitive advantage. The Board reiterated that innovation and export will continue to sustain a profitable business model and increased shareholder value going forward.
On a shorter term view, the Directors also explained that the performance of the Group in the coming months will be dependent on the international and local economic scenarios coupled with the ability to sustain local tourist numbers.
Download a copy of the Simonds Farsons Cisk plc Half-Year Report covering the six months ended 31 July 2012.