Daily Review 29.05.2024

Farsons generates record operating profit


The MSE Equity Price Index remained relatively unchanged at 3,695.505 points as the gains in BOV, GO, and Farsons were mostly offset by the declines in BMIT and M&Z. Meanwhile, seven other equities closed unchanged as the total trading activity in local equities amounted to €0.11 million. Download today’s Equity Market Summary.

Simonds Farsons Cisk plc moved 0.7% higher to the €6.75 level on two trades totalling 3,297 shares. Following the close of trading, Farsons published its annual results for the financial year ended 31 January 2024. Farsons generated record revenues of €133 million (+12.4%) and record operating profit of €17.4 million (+4.1%), driven by the improvement in profitability of the ‘Importation, wholesale of food & Operation of franchised food establishments’ segment. The net profit of €15.3 million was minimally lower than the previous year due to a tax charge in contrast to the tax credit of the previous year. The Board of Directors is recommending a final net dividend of €0.11 per share to all shareholders as at close of trading on Monday 3 June 2024, subject to approval at the Annual General Meeting Scheduled for Thursday 27 June.

Bank of Valletta plc recovered yesterday’s losses as it rebounded by 0.7% to the €1.40 level on a single deal of 1,175 shares.

Also among large companies by market cap, GO plc rose by 1.4% to the €3.00 level across six trades totalling 16,600 shares.

In contrast, GO’s data centre and IT services subsidiary BMIT Technologies plc slumped by 10% to a two-week low of €0.342 across four deals amounting to 34,300 shares. Today, BMIT held its Annual General Meeting during which all the resolutions on the agenda were approved.

M&Z plc fell by 3.2% to the €0.60 level as 6,200 shares changed hands.

Meanwhile, Trident Estates plc held the €1.28 level on a single deal of 1,722 shares. Tomorrow, Trident is expected to publish the full-year results for the financial year ended 31 January 2024.

Tigné Mall plc held the €0.83 level on one trade of 4,000 shares.

Also in the property sector, MIDI plc and Malta Properties Company plc held the €0.25 and €0.34 levels respectively over trivial volumes.

Malta International Airport plc traded flat at the €5.70 level on two trades of 2,200 shares.

A single trade of 1,940 shares left the share price of PG plc unchanged at the €1.93 level.

APS Bank plc remained at the €0.52 level on muted activity.

The RF MGS Index fell by 0.47% to a fresh one-month low of 885.893 points, as eurozone sovereign bond yields continued to increase with the German 10-year bund yield exceeding 2.65% for the first time since the end of November 2023. Estimates released today showed that inflation in Germany during May is anticipated to be 2.8%, which is higher than initial projections of 2.7% and above the inflation figure of the previous month of 2.4%. Meanwhile, core inflation is forecasted to stall at 3.0% after declining every month since June 2023. Furthermore, services inflation is expected to increase to 3.9% from 3.4% during the prior month.


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.