Simonds Farsons Cisk plc - Full-Year Results

On 28 May 2025, Simonds Farsons Cisk plc published its Annual Report & Financial Statements for the year ended 31 January 2025. Following the Board of Directors’ decision to spin off the Group’s food businesses, namely Quintano Foods Limited and Food Chain Limited into a separately publicly listed company which will be called Quinco Holdings plc, the financial results of the food businesses were reported as discontinued operations. As such, the financial results of the previous financial year were also restated such that the continued operations relate solely to the beverage businesses.

Revenue from the beverage businesses grew by 5.5% to €101.8 million.  The revenue from the food businesses increased by 6% to €39.7 million. As such, the Group’s total revenue amounted to a record of €141.5 million compared to €132.9 million in the previous year.

Farsons explained that the profitability of both business segments registered improvement despite the challenges of rising costs. The operating profit of the beverage businesses climbed by 9% to €15.6 million while the operating profit of the food businesses amounted to €3.1 million. Overall, the Group’s operating profit increased by 7.9% to a record €18.8 million (FY2023/24: €17.4 million). The Group’s operating profit margin remained virtually unchanged at 13.2%. Excluding depreciation and amortisation charges, EBITDA increased by 8.8% to €28.7 million and translates into an EBITDA margin of 20.3% (FY2023/24: 21.0%).

After accounting for minimal finance costs and tax income, Farsons reported a net profit of €17.0 million (+23.7%) from the beverage businesses and a further €1.66 million (+5.8%) in net profit from the food businesses. Overall, the Group’s net profit reached a record of €18.6 million, which is 22% higher than the previous year and translates into a return on average equity of 11.9% (FY2023/24: 10.6%).

The Statement of Financial Position as at 31 January 2025 shows that total assets increased by 8% to €228 million, principally consisting of the beverage segment’s property, plant and equipment of €116 million and €32.6 million in assets attributable to the food segment. Total liabilities remained practically unchanged at €63 million with €14.3 million being attributable to the food businesses. Meanwhile, total equity increased by 11.5% to €165.2 million.

Dividend

The Directors of Farsons resolved to recommend a final net dividend out of tax-exempt profits of €0.14 (2024: €0.11) per share. The dividend will be paid on Friday 27 June 2025 to shareholders as at the close of trading on Friday 30 May 2025, subject to approval at the upcoming AGM to be held on Thursday 26 June 2025.

When including the net interim dividend of €0.06 per share paid in October 2024, the total net dividend attributable to FY2024/25 amounts to €0.20 per share, which is 25% higher than the total net dividend attributable to the previous financial year, and represents a payout ratio of 39%.

Investments

The Chairman explained that the Group commenced work on a new logistics centre for the food businesses in Ħandaq which is scheduled to be completed by mid-2026. The logistics centre is expected to significantly enhance storage capacity, streamline operational workflows, and introduce a digitalised inventory management system.

Meanwhile, the Group also launched a major logistics project for an automated returnable packages logistics facility in Mrieħel which will centralise the handling of returnable and refillable containers, optimising the sorting and inspection processes, and enabling greater efficiencies within the manufacturing and distribution cycles.

Outlook

The directors explained that the business outlook for the Group’s beverage segment for financial year ending 31 January 2026 remains broadly encouraging, with expectations of sustained positive momentum driven by growth in the tourism sector. Nonetheless, the Group faces headwinds from large competition, regulatory requirements, as well as pressures in the labour market which will put downward pressure on margins.

Ahead of the upcoming AGM to be held on Thursday 26 June 2025, Farsons will also publish an Explanatory Circular with further details of the proposed spin off of the food businesses and workings on how the two resulting financial statements of the two businesses will unfold.