Farsons in ‘one of the most transformational periods in recent history’ – Louis Farrugia

The Chairman of Simonds Farsons Cisk plc, Louis A Farrugia, described the past financial year as “one of the most significant and transformational periods in the Group’s recent history.”

The Board implemented several strategic initiatives at strengthening the long-term positioning and focus of the group’s beverage and food interests, he said.

Among these developments was the spin-off and separate listing of the group’s food business under Quinco Holdings plc.

The group’s food business delivered improved trading performance during the eight-month reporting period, generating turnover of €29.7 million and profit before tax of €3.0 million. During the year, the group successfully completed the strategic spin-off of its food business into Quinco Holdings plc, with shares listed at a total value of €46.8 million, distributed to shareholders through a dividend in kind. Quinco Holdings plc was placed on the official list of the Malta Stock Exchange in October last year.

Regarding the group’s beverage operations, Simonds Farsons Cisk plc reported “record beverage segment turnover” of €106.5 million, representing year-on-year growth of 4.63 per cent.

Profit before tax from the beverage segment increased by 8.2 per cent to €16.0 million, while EBITDA for the Group reached €29.2 million.

Gross profit margins improved from 42.5 per cent to 42.7 per cent, the group said, adding that this reflects operational efficiencies and focussed cost management despite continued inflationary, freight, and labour cost pressures.

The Chairman said that during the year, important projects were completed, including the commissioning of a CO₂ recovery plant and the conversion of steam-generating boilers from light heating oil to liquefied petroleum gas.

The group also commenced an €11 million investment in a new robotically operated automated logistics warehouse. The facility is expected to be commissioned in Q4 2027. The Chairman said that the group is also evaluating further strategic operational developments on land that is currently used for employee parking, trailer parking and storage.

“Situated adjacent to Trident Park, this land is currently the subject of preliminary studies and conceptual master planning exercises being undertaken by Farsons and Trident Estates plc, to assess both companies’ future requirements and development opportunities.”

These studies are at an exploratory stage, and no decisions have been taken in relation to any development scheme, transaction structure, funding arrangement or implementation timetable, he said, adding that these would remain subject to further studies, corporate approvals and, where applicable, Board, shareholder and regulatory considerations.

Another important area of focus for the Board during the year, the Chairman said, was leadership succession and continued strengthening of the group’s management structures.

Here, he said that Mr John Bonello Ghio was appointed Chief Commercial Officer, responsible for the group’s marketing and sales functions within the beverage business. Mr Alistair Haber joined the Group in the new role of Chief Digital and Technology Officer. Mr Matthew Cuomo was appointed General Manager of Farsons Beverage Imports Company Ltd.

The Chairman believes the group delivered a strong performance while also undertaking major structural, strategic and leadership transitions. “We strengthened the foundations for future growth across our beverage and food interests, whilst continuing to invest confidently in the long-term future of the business.”

Group CEO Norman Aquilina stated: “The group continues to operate within a challenging international environment shaped by geopolitical instability, supply chain disruptions, freight volatility, and labour shortages. Notwithstanding these conditions, as well as a growing competitive local market, we maintained positive momentum through strong brand equity, operational discipline, and the resilience of our diversified beverage portfolio.”

The Board will be recommending a final net dividend of €5.22 million (€0.145 per share) at the forthcoming Annual General Meeting. Subject to approval, total dividends distributed in respect of FY2026 will amount to €7.56 million, equivalent to €0.21 per share.

This Annual Report and forthcoming Annual General Meeting mark the final occasions on which Mr Norman Aquilina addresses shareholders in his capacity as Group Chief Executive Officer. Mr Aquilina will be succeeded by Mr Michael Farrugia, who was appointed CEO Designate in October 2025 and will assume leadership of the Group as Chief Executive Officer with effect from 1 July 2026. Mr Aquilina was appointed as Executive Chairman of Quinco.