Chairman says Halmann Vella Group made ‘notable achievements’ across operating sectors in 2023

Chairman Martin Vella has stated that Halmann Vella Group persevered during 2023 and made a number of notable achievements across its three operating sectors, despite different macroeconomic challenges.

His comments came as part of the group’s Annual Report and Consolidated Financial Statements for the year ended 31st December 2023, in which the financial performance of the group was also highlighted. Halmann Vella Group is a business that operates as a manufacturer of stone, marble and granite, as well as terrazzo and pre-cast elements. It also owns and leases a number of commercial properties, while also being involved in property development and resale.

In 2023, pre-tax profit amounted to €3.5 million, slightly lower than the prior 12 months (2022: €3.6 million). This came despite a 5.2 per cent increase in revenue during the year, totalling €25.1 million (2022: €23.8 million), primarily driven by income from contracts with customers (€22.6 million), which accounted for 89.9 per cent of total revenue. The remaining portion came from rental income, with Halmann Vella Group having lease contracts for industrial buildings, plant, machinery, offices, showroom exhibits, stores, and a boutique hotel.

Cost of sales and services remained relatively stable at €15.7 million (2022: €15.6 million), while distribution and selling costs marginally decreased from 2022’s €197,428 to €181,346 in 2023. On the other hand, administrative expenses surged upwards by 30 per cent to €5.5 million (2022: €4.3 million). The group attributed the increase in administrative expenses to rises in office salaries, particularly because of wage inflation.

Total assets for the year expanded from €124.6 million in 2022 to €130.9 million in 2023. The Board of Directors did not propose the payment of a dividend, stating that this has been done with the aim of “further strengthening the financial position of the group.”

Mr Vella stated that 2023 was another year marked by a “challenging economic landscape in Malta,” characterised by heightened inflation, labour constraints, and mounting financing costs, brought by different macroeconomic challenges.

“Despite these challenges, I am proud to report that Halmann Vella Group has navigated through these headwinds with perseverance,” he added.

Mr Vella said that the group made “notable achievements” across its three sectors, namely manufacturing and general contracting, property letting, and property development.

He added that the group is making significant investments in new plant and machinery within its manufacturing segment, allowing it to introduce new products to the market. In the property development area, it has continued to pursue a combination of small and medium-sized projects, while the property letting segment continues to be a “stable performer,” contributing positively to the overall performance.

“As a result of our collective efforts, we have witnessed growth across key financial metrics, including revenues, operating profits, assets, and equity, reflecting the strength of our business model,” Mr Vella affirmed.

Looking ahead, Mr Vella acknowledged that while significant economic uncertainties persist, Halmann Vella Group will remain “cautiously optimistic” about its approach. “The order book for the coming year is promising, with several landmark projects in progress and opportunities on the horizon. We are confident that our balanced business model and talented team will enable us to navigate challenges and capitalise on emerging opportunities, driving sustained growth and value creation for our shareholders and stakeholders,” he said.

He concluded by expressing gratitude to the group’s employees, Board of Directors, and shareholders, adding that he looks forward to “achieving many more milestones together in the years to come.”

Social image: Halmann Vella Group