Hudson Malta Sales Ltd, a company within Hudson Group, recorded €347,944 in profit before tax during 2023, a decrease of 39.2 per cent from 2022’s €572,188.
This was revealed in the company’s Annual Financial Report for the year ended 31st December 2023, published on Tuesday.
Hudson Malta Sales Ltd carries out the importation and distribution of branded consumer products, while also operating its own retail outlets. Last February, it merged with local retailer Trilogy Limited, a move that had been in the works since 2022, when Hudson Group had completed the acquisition of Trilogy.
During 2023, Hudson Malta Sales Ltd continued to expand its store network, marked by the opening of six outlets in Mercury Towers, St Julian’s, in November.
This increase in the number of stores resulted in a rise in revenue of €4.9 million or 8.9 per cent to €59.8 million in 2023 (2022: €54.9 million). The majority of its turnover came from retail, with this accounting for €45.8 million (80.7 per cent) of the total figure. The remaining €13.9 million came from wholesale.
Cost of sales went up from €36.3 million in 2022 to €38.8 million in 2023. Operating and administrative expenses also experienced an increase, surging upwards by 14.4 per cent to €19.1 million. The primary contributors to these increases were the purchases of goods for resale (€36 million) and employee benefit expenses (€7.4 million). During the financial reporting period, Hudson Malta Sales Ltd had an average of 428 employees, substantially higher than in 2022 (325). Out of the total for 2023, 361 worked in retail, while 67 worked in distribution.
The company’s finance costs for 2023 amounted to €1.4 million, with it incurring more bank interest and charges, interest on loan from its parent company, as well as interest charges on lease liabilities.
Hudson Malta Sales Ltd’s liquidity remains relatively strong, with total assets increasing to €71.8 million (2022: €56.1 million), €29.2 million of which were total current assets.
The Board of Directors of the company did not recommend the payment of a final dividend and proposed the balance of retained earnings, amounting to €5.9 million, to be carried forward to the following financial year. During a meeting between the Board on 26th March 2024, it had resolved to declare an interim dividend of €5.9 million.
In the announcement of the financial results, Hudson Malta plc stated that the Annual Report and Audited Consolidated Financial Statements of parent company Hudson Holdings Limited for 2023 will be published by no later than 30th June 2024. This will be done once it is approved by the parent company’s Board of Directors and shareholders.
