The General Soft Drinks Company Limited (GSD Co. Ltd) registered €4.1 million in pre-tax profit during 2023, an increase of 11.9 per cent from 2022’s €3.7 million.

The figures were announced in the company’s Annual Report and financial statements for the year ended 31st December 2023.

GSD Co. Ltd is involved in the bottling and sale of soft drinks and mineral water, and is the sole licensed bottler for products of The Coca-Cola Company in Malta. It forms part of the portfolio of company constituting Mizzi Organisation. It is important to note that GSD Co. Ltd’s products are sold to GSD Marketing Limited, another organisation that is part of Mizzi Organisation, which in turn acts as the sole point of focus for all customers in the group’s beverage activities.

During 2023, GSD Co. Ltd’s revenue amounted to €38.7 million, a steady improvement of 8.4 per cent from the €35.7 million recorded in the previous year.

Cost of sales for the year totalled €23.9 million (2022: €21.4 million), while distribution and selling costs remained relatively stable at €7.1 million (2022: €7 million). Administrative expenses amounted to €3.2 million, slightly down from the €3.3 million recorded in 2022. Costs include €8.2 million in employee benefit expenses, an increase of 7.5 per cent from the €7.6 million registered in 2022.

The Directors’ report highlighted that GSD Co. Ltd is now “in a much better situation” than it was in 2020 and 2021, when the company was heavily impacted by the COVID-19 pandemic. In fact, in 2023, the company performed better than in 2019, when it had brought in €32.6 million in revenue.

In 2023, the company repaid €3.3 million in loan repayments, with the total borrowings as at the end of the year dropping to €4.2 million (2022: €6.8 million).

Total assets as at the end of 2023 amounted to €55.3 million. The Directors have proposed and paid a final net dividend of €2 million. The Directors also proposed that the balance of retained earnings, amounting to €35.7 million, be carried forward to the following financial year.

Similarly to GSD Co. Ltd, GSD Marketing Ltd also reported an improved performance during 2023, with revenue rising from 2022’s €53.7 million to €58.9 million. Profit before tax for the year amounted to €1.7 million, relatively similar to that of 2022.

Looking ahead, GSD Co. Ltd’s Directors stated that projections indicate that the company will continue to grow in 2024 “in line with positive economic indicators and continued recovery of inbound tourism.”

The company’s franchise agreement with The Coca-Cola Company has been extended by three years until 31st December 2026. While the report stated that the legal agreements are in the process of being formalised and is expected to be finalise in the coming months, the Board of Directors has received written formal communication to confirm this renewal.

The Directors added that the company continued to deliver good financial and operational results in 2023 and in the first quarter of 2024, and from the continued interaction with The Coca-Cola Company, they believe that GSD Co. Ltd “has a robust business plan on all fronts, to ensure full alignment with the vision and goals of the franchisor.”