M&Z reports double-digit growth in revenue

The MSE Equity Price Index extended its losing streak with a further drop of 0.08% to 3,724.278 points, reflecting the declines of Hili Properties and Lombard. Meanwhile, six other equities closed unchanged as the total trading activity remained at the €0.10 million level. Download today’s Equity Market Summary.

Today, M&Z plc published the interim results for the six-month period ended 30 June 2023. Revenues increased by 12.8% to €15.1 million, reflecting the impact of high inflation as well as the strong demand for branded consumer products. However, costs increased by 13.3% to €13.7 million, resulting in an operating profit of €1.43 million compared to €1.33 million in the same period last year. As such, the operating profit margin dropped to 9.5% from 9.9% a year earlier. Overall, the net profit for the period amounted to €0.84 million, which is 7% higher than the corresponding net profit for the first six months of 2022. The Directors of M&Z approved an unchanged net interim dividend of €0.009 per share which translates into a payout ratio of 47% (H1 2022: 50%). The dividend will be paid on 29 September 2023 to all shareholders as at close of trading on 19 September 2023.

Also today, Santumas Shareholdings plc published the annual report and financial statements for the financial year ended 30 April 2023. The company reported an increase in investment income, fair value of financial assets, as well as fair value of investment properties. Overall, the net profit for the year amounted to €0.74 million compared to a net loss of €0.38 million in the previous year. The total equity improved by 6.9% to €11.6 million which translates into a net asset value per share of €1.587.

Hili Properties plc declined by 1.7% to the €0.232 level across four deals totalling 17,000 shares.

Lombard Bank Malta plc shed 2.4% to a seven-month low of €0.83 on a single trade of 30,000 shares. Lombard is expected to publish its interim results later today.

Also in the banking sector, APS Bank plc (43,056 shares) and Bank of Valletta plc (15,135 shares) closed unchanged at the €0.61 and €1.26 levels respectively.

Mapfre Middlesea plc closed unchanged at the €1.25 level after failing to hold to an intraday high of €1.30 (+4%) across six deals totalling 20,554 shares.

Malta International Airport plc held the €5.70 level on a single trade of 800 shares.

GO plc and Simonds Farsons Cisk plc also stayed at the €2.94 and €7.10 levels respectively on trivial volumes.

The RF MGS Index recaptured some of yesterday’s losses as it rebounded by 0.11% to 870.788 points. Data from the eurozone’s largest economy showed that wages in Germany rose at a record annual pace of 6.6% during the second quarter of the year. Indeed, the figure marks the first annualised growth rate that is above the country’s inflation rate in two years. Elsewhere in the US, new job openings in July dropped when compared to a month earlier, signalling that the labour market is experiencing the effects of the tight monetary policy set by the Federal Reserve.

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any 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.