Simonds Farsons Cisk plc - Interim Results

On 27 September 2023, Simonds Farsons Cisk plc published its interim financial results for the six-month period ended 31 July 2023.

Revenues increased notably to a new record (at interim stage) of €65.2 million which is 13.8% higher than the previous high of €57.3 million achieved in the first half of the previous financial year. Farsons registered growth in all its business units, particularly in the ‘Franchised food operations’ segment where sales increased by 32.8% to €11.9 million when compared to €9.0 million in H1 2021/22. In this respect, Farsons explained that the sector is experiencing a significant change to its business model with higher delivery/take-home demand. Meanwhile, the ‘Brewing, production & sale of branded beers & beverages’ arm, the Group’s core revenue stream increased by 8.7% to €34.6 million (H1 2021/22: €31.8 million) despite a highly competitive market and ongoing concerns regarding illicit importation. Similarly, ‘Importation, Wholesale and Retail of Food and Beverages’ also recorded growth over the prior highs, with revenues increasing by 13.3% to €18.7 million compared to €16.5 million in the corresponding period of the previous financial year.

During the period, Farsons faced inflationary pressures on its input costs as well as wage inflation (reflecting shortages in the labour market) which led to a higher cost base. In fact, operating expenses grew by 15.6% to €56.5 million (H1 2021/22: €48.8 million) representing a faster pace than the increase in sales. Consequently, Farsons’s operating profit margin eased to 13.4% compared to 14.8% in the previous financial year. Nonetheless, operating profit still increased by 3.4% to a record €8.8 million (H1 2021/22: €8.5 million). The major contributor to the Group’s profitability remained the ‘Brewing, Production and Sale of Branded Beers and Beverages’ segment which generated an EBIT of €5.1 million, despite generating €0.3 million less than the €5.4 million in the previous corresponding period. On the other hand, the operating profit contribution from ‘Importation, Wholesale and Retail of Food and Beverages’ increased to €2.7 million (H1 2021/22: €2.2 million) as the segment actually reported an improvement in margins. Meanwhile, the ‘Franchised Food Retailing’ business posted an EBIT of €0.9 million, marginally unchanged from the previous corresponding period as the margin compression offset the growth in the segment’s revenue.

After accounting for net finance costs of €0.67 million (H1 2021/22: €0.69 million) and tax charges of €0.56 million (H1 2021/22: €0.77 million), Farsons reported a net profit of €7.5 million which translates into an annualised return on average equity of 10.9%.

The condensed Statement of Financial Position as at 31 July 2023, when compared to the corresponding figures as at 31 January 2023, shows that total assets increased by 3% (or €6.4 million) to €221.5 million. Meanwhile, total liabilities climbed by 3.7% (or €2.8 million) to €78.7 million and the equity base of Farsons expanded by 2.6% (or €3.6 million) to €142.7 million.


Farsons resolved to distribute a net interim dividend of €0.05 per share which is an 11.1% increase from the €0.045 which was paid out last year. The interim dividend distribution translates into a payout ratio of 23.9% relatively in line with that of H1 2021/2022. The dividend is payable on 18 October 2023 to all shareholders as of the close of trading on 2 October 2023.


During the period under review, Farsons inaugurated its Old Brewhouse following a restoration project. All food and beverage outlets within the venue are now open for business and it is expected to continue to ramp up business gradually as well as support the Group’s iconic brands.

The Group is also seeking to address logistical and storage capacity constraints within its beverage operations. Indeed, the Group is in the process of submitting a planning application for a fully automated returnable packages facility within the existing footprint of the Mrieħel production facility.

Additionally, Farsons plans to further invest in the Foods sector, by developing specialised warehousing and logistical capabilities utilising land in Ħandaq, which the Group already owns.


Commenting on the results delivered during this first half of the current financial year and the outlook for the future, Farsons noted that the first half performance reflects a period characterised by high demand, inflationary pressures, intensifying competition, a tight labour market and constraints relating to consumer spending power.

Looking ahead, management aims to contain these cost pressures through enhanced operational efficiency across all sectors as well as responding positively to changing market demands.

Despite the upcoming challenges, the Group maintains a cautious yet optimistic outlook for the remainder of the current financial year and remains committed to seek further growth and deliver adequate profit for its shareholders.