Halmann Vella Group plc on Thursday announced that it registered €25.1 million in revenue during 2023, 5.2 per cent more than it did in the previous year (2022: €23.8 million).
The results were published in the diversified group’s Annual Report and Consolidated Financial Statements for the year ended 31st December 2023.
Halmann Vella Group is a business that primarily 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.
During 2023, the majority of the group’s income was generated from contracts with customers, with €22.6 million being raised from this segment (2022: €21.4 million), accounting for 89.9 per cent of total revenue. This includes the sale of stones, marbles, granites, patterned tiles, terrazzo and pre-cast related products (2023: €3.6 million; 2022: €1.8 million), the sale of electricity generated from photovoltaic panels (2023: €313,511; 2022: €274,048), and the rendering of general construction and other services (2023: €15.5 million; 2022: €16.2 million).
The remaining €2.5 million in revenue came from rental income, with the 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), with this being primarily comprised of direct wages (2023: €3 million) and cost of goods sold (2023: €9.3 million).
Distribution and selling costs decreased marginally 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). Around a third of the administrative expenses in 2023 were office salaries (€1.9 million), with the group stating that this was mainly a result of wage inflation.
Other operating income for the year came in at €662,615, slightly higher than 2022’s figure (€620,169).
The change in fair value of investment properties dropped sharply from €1.5 million in 2022 to €386,273 in 2023, while income from dividends amounted to €1.3 million.
Finance costs for the year amounted to €2.6 million, up by 10.4 per cent from the previous year (2022: €2.4 million).
As a result, Halmann Vella Group registered a profit before tax of €3.5 million, marginally lower than the €3.6 million recorded in 2022.
The group’s 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, saying that this has been done with the aim of “further strengthening the financial position of the group.”
Commenting on the group’s performance over the year, Chairman Martin Vella remarked that 2023 was another year marked by a “challenging economic landscape in Malta,” characterised by heightened inflation, labour constraints, and mounting financing costs.
“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 said 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 even though 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.”
