Simonds Farsons Cisk plc - Interim Results

On 28 September 2022, Simonds Farsons Cisk plc published its interim financial results for the six-month period ended 31 July 2022.

Revenues increased notably to a new record (at interim stage) of €57.3 million which is 7.6% higher than the previous high of €53.3 million achieved in the first half of the 2019/20 financial year. In this respect, Farsons explained that all its business units registered growth, especially the ‘Brewing, Production and Sale of Branded Beers and Beverages’ segment which increased sales by 10.3% to €31.8 million when compared to €28.9 million in H1 2019/20. Meanwhile, the ‘Importation, Wholesale and Retail of Food and Beverages’ arm as well as the ‘Franchised Food Retailing’ business also recorded growth over the prior highs, with revenues increasing by 4.8% and 3.6% to €16.5 million and €8.98 million respectively. Overall, Farsons noted that the encouraging performance was achieved on the back of the continued post-pandemic economic recovery, the strong rebound in tourism, as well as the robust response by consumers to social events and celebrations.

The increased volumes of business led to a higher cost base, although operating expenses grew at a slower pace than the rise in sales. In fact, total overheads climbed by 7.1% (when compared to H1 2019/20) to €48.8 million, thus resulting in a record operating profit (“EBIT”) of €8.47 million and an EBIT margin of 14.8% (H1 2019/20: 14.4%). The major contributor to the Group’s profitability was the ‘Brewing, Production and Sale of Branded Beers and Beverages’ segment which generated an EBIT of €5.41 million. On the other hand, the ‘Importation, Wholesale, and Retail of Food and Beverages’ arm and the ‘Franchised Food Retailing’ business posted an EBIT of €2.19 million and €0.86 million respectively.

After accounting for net finance costs of €0.69 million and tax charges of €0.77 million, Farsons reported a net profit of just over €7 million which, in turn, translates into an annualised return on average equity of 10.9%.

The condensed Statement of Financial Position as at 31 July 2022, when compared to the corresponding figures as at 31 January 2022, shows that total assets increased by 1.9% to €204.7 million whilst total liabilities climbed by 0.9% to €72.4 million. As a result, the equity base of Farsons expanded by 2.4% to €132.3 million.


Farsons resolved to distribute a net interim dividend of €0.045 per share which translates into a payout ratio of 23.1% (H1 2019/20: 15.6%). The dividend is payable on 19 October 2022 to all shareholders as at close of trading on 3 October 2022.


During the period under review, Farsons continued working on the restoration and rehabilitation of the Old Brewhouse. This landmark project is now welcoming its first clients and tenants over a phased opening programme. The project will be completed in the coming months and consists of a Farsons Visitor Experience, a Microbrewery, a Gastrobrewpub and the Farsons Brand store, in addition to a bistro restaurant and a Sky Line bar.

Apart from the Old Brewhouse project, the Group continues to pursue other investments with a view of achieving further operational efficiencies, increase innovation, and also dedicate additional focus on digitalisation. The current investment programme includes the installation of additional photovoltaic panels, the initiation of a project for the recovery of CO2, as well as the opening of new restaurants for the franchised food offering.


Commenting on the results delivered during this first half of the current financial year and the outlook for the future, Farsons noted that the H1 performance reflects the return of a semblance of commercial normality and the positive consumer sentiment following long periods of restraints.

Looking ahead, however, a level of caution is required as substantial challenges remain across various fronts including those impacting the supply side of the business and the potent inflationary pressures that are being unleashed. Whereas there has been a strong recovery in demand following the pandemic, businesses are now facing a new set of global challenges and the uncertainties that accompany them.

On the domestic front and of particular concern to the Group is the very tight labour market which is proving to be a significant challenge from two angles – staff shortages and the challenges this poses to the provision of high quality service across all business units; and spiralling payroll costs as a result of the significant excess demand domestically for the limited supply of quality human resources.

After a strong start to the current financial year, the challenges that are currently being experienced are likely to grow in significance. Indeed, there is a growing expectation that the 2022/23 financial year will be a “year of two halves”, as the second six months of the current financial year witnesses growing input costs (raw materials and payrolls) coinciding with a softening of consumer demand as inflation pressures squeeze household budgets, the combination of both will place significant pressure on profit margins.

Despite the prevailing macroeconomic headwinds, Farsons expressed its confidence of achieving the financial targets as provided in the Financial Analysis Summary published on 22 July 2022. These included:

  • Revenues of €115.7 million which would be 11.8% higher than the record figure of €103.5 million achieved in the 2019/20 financial year.
  • EBITDA of €25.6 million (FY2019/20: €22.7 million).
  • Net profit of €12.2 million (FY2019/20: €11.9 million).