PG generates record revenue but margins narrow
Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.
The MSE Equity Price Index advanced by 0.38% to a fresh six-year high of 4,315.2 points as the gains in BOV, HSBC, RS2, APS Bank, MIA, and MaltaPost outweighed the declines in IHI and VBL. Two other equities closed unchanged. Trading activity was strong at €0.69 million. Download today’s Equity Market Summary.
Yesterday evening, PG plc published its Annual Report and Financial Statements for the year ended 30 April 2026. Revenue increased by 9.3% to a record of €221 million from €202 million, as competitive pricing sustained footfall growth while the Zara and Zara Home operations maintained their strong performance. However, operating costs net of other income climbed by 10.7% to €204 million. Therefore, operating profit dropped by 5% to €17.1 million and profit before tax eased to €15.9 million from €17.1 million. Nonetheless, a lower tax charge of €2.99 million lifted the net profit attributable to shareholders by 4.6% to €13.0 million, translating into earnings per share of €0.12. The Directors explained that the Group remains focused on consolidating the benefits arising from the expansion of its retail footprint, while continuing to deliver value to customers without compromising on quality.
Bank of Valletta plc was by far the most actively traded equity as it rose 2.2% to €2.33, its highest close since May 2006, across 243,343 shares having a market value of €0.56 million, accounting for over 80% of today’s total value traded across local equities.
Also in the banking sector, HSBC Bank Malta plc gained 1.4% to €1.50, its highest close since August 2025, across 71,733 shares worth €0.11 million.
APS Bank plc advanced by 3.5% to €0.59 across 2,220 shares.
RS2 plc rebounded by 4.8% to €0.44 across 30,500 shares.
Malta International Airport plc added 0.8% to €6.65 on one deal of 182 shares.
MaltaPost plc climbed 2.1% higher to €0.49 on a single trade of 100 shares.
In contrast, International Hotel Investments plc slumped by 8.6% to €0.585 across 8,776 shares. Yesterday, IHI published its interim results which showed that in the first half of the year revenue remained broadly in line with the previous comparable period at €150.3 million, but operating profit dropped to €0.36 million compared to €5.97 million in the corresponding period last year driven by higher depreciation and amortisation charges as well as increased administrative expenses. Furthermore, net finance costs increased by 19.7% to €23.5 million compared to €19.6 million in the same period last year, principally reflecting adverse exchange differences on borrowings as well as the recognition of an interest expense on the Corinthia Rome finance lease.
VBL plc dropped 8.2% to €0.202 on a single trade of 3,000 shares.
Computime Holdings plc (€0.49) and Grand Harbour Marina plc (€0.925) both closing unchanged on muted activity.
The RF MGS Index fell by 0.32% to 886.6 points as eurozone sovereign bond yields continued to climb due to the escalation of the Iran conflict and its impact on fuel prices, with thirty-year yields in Germany and France climbing to their highest levels since 2011 and 2008 respectively at above 3.8% and 4.95%. Yesterday, the benchmark Dutch TTF natural gas price rose above €70 per megawatt-hour for the first time since January 2023. Today, a flash estimate by Eurostat showed that euro area inflation accelerated to 3.3% in August from 2.9% in July. The increase was almost entirely driven by the surge in energy prices, where the annual rate rose to 14.3% from 10.3% as the resumption of hostilities between the United States and Iran and continued disruption to shipping through the Strait of Hormuz kept oil and gas prices elevated. However, core inflation eased to 2.4% and below forecasts of 2.5%.
This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.
The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.
This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.