PG generates record profits amid higher sales volumes

 

The MSE Equity Price Index fell by 0.44% to 3,860.730 points driven by the declines in FIMBank, IHI, MPC, and the ordinary shares of RS2. Meanwhile, five other equities closed unchanged as today’s trading activity in local equities was muted at €0.07 million. Download today’s Equity Market Summary.

PG plc traded flat at the €1.91 level across three trades amounting to 4,280 shares. Yesterday evening, PG published its annual results for the financial year ended 30 April 2024. Revenues surged by 13.9% to a new record of €198 million reflecting the further growth in income achieved by both business segments. Operating costs (net of other income) increased by 14.9% to €178 million principally driven by higher cost of sales reflecting the stronger level of business volumes. However, PG still reported a 5.5% increase in operating profit to a record of €20.0 million. Nonetheless, the EBIT margin dropped to 10.1% compared to 10.9% in the previous financial year. Overall, PG generated a record net profit of €13.5 million, which is 6.9% higher than the previous comparable figure and translates into a return on average equity of 20.6% (FY2022/23: 21.4%). The Directors stated that the Group’s target for the current financial year is to attain the level of profitability recorded in the financial year ended 30 April 2024.

MaltaPost plc closed unchanged at the €0.43 level on two deals amounting to 22,159 shares. Today, MaltaPost’s parent company Lombard Bank Malta plc published its interim results showing an increase across all income streams. As a result, the Group’s profit before tax for the first half of 2024 surged to €11.4 million compared to €5.4 million in the same period last year. As at 30 June 2024, Lombard’s net asset value per share stood at €1.28.

Malta International Airport plc held the €6.10 level on a single trade of 798 shares.

Bank of Valletta plc closed unchanged at the €1.70 level over three deals amounting to 11,239 shares.

MedservRegis plc held the €0.42 level over trivial volumes. Medserv is expected to publish its interim results on Friday 30 August.

The ordinary shares of RS2 plc fell by 3.8% to the €0.655 level on muted activity. RS2 is expected to publish its interim results later today.

Malta Properties Company plc slumped by 7.6% to the €0.34 level on two deals amounting to 10,327 shares.

FIMBank plc plummeted by 6.4% to the USD0.188 level over eight trades totalling 137,334 shares. FIMBank is expected to publish its interim results later today.

International Hotel Investments plc decreased by 2.2% to the €0.43 level as 2,800 shares changed hands. IHI is expected to publish its interim results next Friday 30 August.

Today, M&Z plc announced that the holders of its 1,500,000 cumulative redeemable preference shares having a nominal value of €1,500,000 submitted a request to exercise their right to redeem all their preference shares. The request stipulated that the preference shares would be redeemed over a three-year period with 125,000 preference shares to be redeemed on a quarterly basis with dividends continuing to be due on the unredeemed preference shares. The quarterly redemption of preference shares will therefore amount to €125,000. All preference shares redeemed will be cancelled and the amount of the company’s issued share capital will be reduced by the nominal value of those shares.

Santumas Shareholdings plc published its annual results for the financial year ended 30 April 2024. The performance was largely influenced by fair value gains on financial assets. Santumas registered a net profit of €1.12 million compared to €0.74 million in the previous year. The company’s net asset value per share as at 30 April 2024 stood at €1.75.

The RF MGS Index fell for the second consecutive session as it eased by a further 0.09% to 904.769 points. According to Dutch ECB policymaker Klass Knot, excessive government spending is hampering progress on slowing down inflation. In fact, during a speech yesterday he campaigned for a more restrictive fiscal policy stance. Elsewhere in the US, the 30-year mortgage rate fell to the lowest level in sixteen months last week.

 

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.