Bortex Group Finance plc has announced its financial results for the year ending 31st October 2024, reporting a turnover of €23.9 million, EBITDA of €5.2 million, and a profit before tax of €2.1 million.

Despite facing disruptions in its hospitality operations due to ongoing construction works, the group registered positive performance across its diversified divisions, including manufacturing, retail, property management, and hospitality.

During the financial year, Bortex’s manufacturing, retail, and property management operations delivered an adjusted EBITDA of €2.3 million, an improvement on the €2 million reported in 2023.

The retail sector, both in Malta and overseas, experienced notable growth, underpinned by the strengthening of the Gagliardi own-label brand alongside growth in private label, corporate wear, and school wear manufacturing divisions.

However, the private label segment experienced a slight decline, demonstrating the importance of Bortex’s diversified business model.

Retail performance improved significantly over the previous year, driven in part by the successful launch of a new store at The Shoreline Mall in March and the optimisation of operations at Barlowes Department Store within Mercury Towers. Both sites contributed positively to sales and profits.

Additionally, like-for-like sales growth was recorded across the rest of the group’s retail outlets in Malta. The Mosta project was fully completed during the year, with the Bortex retail outlet registering steady sales growth, while the Gagliardi Gran Gusto coffee shop was leased to a third-party operator. All eleven overlying apartments were successfully rented out at rates exceeding budget expectations.

Hospitality division faces temporary closures, but holds strong performance

The group’s hospitality operations were impacted by temporary closures at 1926 Le Soleil, Bortex’s largest hotel, due to extensive construction works. The works included the addition of a heated rooftop pool and deck, along with the development of a new fine dining restaurant.

Additionally, construction on Bortex’s third hotel, located in a building opposite 1926 Le Soleil, also caused disruption to the existing hotel’s operations. Despite these challenges, the hospitality sector maintained strong revenue levels and operational performance across its two operating properties.

Rooms revenue (net of commission) at 1926 Le Soleil totalled €6.1 million, in line with the €6 million recorded in 2023, even though average occupancy dropped to 80 per cent from 88 per cent in 2023 due to reduced inventory. However, the average daily rate (ADR) rose to €139.26, up from €126.06 the year prior.

At 1926 Le Parisot, total rooms revenue increased by 15 per cent to €0.4 million, with the property maintaining a strong occupancy rate of 84 per cent (2023: 87 per cent). The ADR for 1926 Le Parisot climbed significantly to €216.96, up from €185.87 the previous year.

Overall, the hospitality segment delivered EBITDA of €2.9 million, surpassing budget expectations by 14 per cent, though slightly down from €3.6 million in 2023. The drop was attributed to the temporary closures and construction disruptions, as well as increased maintenance costs and additional staffing requirements. General cost inflation across key operational areas also impacted profitability.

Upcoming openings and enhancements in hospitality division

Looking ahead, the hospitality division is preparing for the opening of two new hotels under the 1926 brand.

• In spring 2025, 1926 La Galerie will open in Valletta.
• In summer 2025, Bortex will launch 1926 Les Bains, a luxury five-star hotel featuring 32 spa suites.

These additions, coupled with the recently awarded Michelin Star for its fine dining restaurant, are expected to further enhance the 1926 brand’s positioning in Malta’s luxury hospitality market.

Retail expansion plans for 2025

Bortex is also preparing to open a new larger-format Bortex multi-brand store in Valletta following the acquisition of new freehold premises. This new store will free up the current Valletta location, which will be converted into the group’s second Ralph Lauren store in Malta.

The group plans to further expand its retail portfolio both locally and overseas, leveraging strategic partnerships, new store openings, and data-driven optimisation of existing locations to maximise value and performance.

Financial position and dividend declaration

In line with its financial performance, on 28th February 2025, Bortex’s shareholders approved a performance bonus of €128,048 for the executive directors. On the same day, the directors approved an interim dividend of €490,850.

Subsequent to the year-end, Bortex opened a new retail outlet and acquired another shop, which is currently being renovated to house an additional retail outlet.