M&Z plc has registered a 27 per cent profit before tax for the year 2024, totalling €3.19 million, up from €2.5 million in 2023. 

M&Z plc is a company dealing in importation and distribution of a wide range of renowned fast-moving consumer goods (FMCG). The M&Z plc portfolio is comprised of over 100 brands, across 11 product categories comprising: ambient, chilled, frozen, fresh, ice-cream, baby and kids, home and personal care, beverages, tobacco, pet care and confectionary.

After a period of high inflation driven by supply chain issues, the cost of sales stabilised during the year, slightly increasing from €23.21 million in 2023 to €23.47 million in 2024. The increase was mainly attributed to increased costs for raw materials and higher prices from suppliers.

Administrative expenses for 2024 amounted to €3 million, down from €3.7 million the previous year. This improvement is attributed to the increase in the loss allowance in relation to trade receivables recognised in 2023.

Despite imminent risks and isolated factors, the company said it remains committed to effective cost management, even in the face of  rising prices and ongoing margin compression within the industry. The company will keep focusing on enhancing its revenue through organic growth while maintaining a streamlined cost structure to ensure steady and sustainable development.

After taking into consideration administrative costs, M&Z plc registered an EBITDA of €4.4 million (up from €3.85 million 2023). Despite the favourable EBITDA performance, the company said tight labour market conditions, increasingly price-sensitive shoppers, potentially fluctuating in-bound tourism, supply chain disruptions and cybersecurity threats affect the company’s financial performance.

The company continues to face competition from foreign and local hard discounters “which import and sell their own products. These competitors offer diversified product ranges, lower prices and improved shopping experience, appealing to increasingly price-sensitive shoppers”, according to the importer and distributor. 

Notwithstanding the recent increase in inbound tourism, the current international geopolitical climate may still affect inbound tourism, the company’s report said. This in turn may have a bearing on the demand for some of the company’s product categories, such as ice-creams, wines and spirits.

M&Z plc anticipates modest growth in revenues, despite the uncertainties in the market landscape.

The company emphasised its dedication to optimising operational efficiency and enhancing customer satisfaction, as well as maximising shareholder value. In this regard, it is actively implementing rigorous cost-saving initiatives to improve overall efficiency and deliver greater value across all sectors of the business.

In addition to continuously actively sourcing key suppliers, the directors said in the report, another growth strategy identified has been the extension of the brand portfolio through several successful mergers and acquisitions. This activity has been key in driving the company into new product segments, allowing it to increase and diversify its product range. 

In 2024, a gross dividend of €44,056 was paid on preference shares which was split into €29,590  distributed from retained earnings and €14,466 recognised as an expense.

The directors recommend the payment of a final net dividend of €712,800 equivalent to €0.0162 per share. This is over and above the interim net dividend of €396,000 equivalent to €0.009 per share paid to shareholders in  September 2024. The total dividend amount paid for the year will amount to €1,108,800 or €0.0252 per share which represents a net dividend yield of 3.5 per cent on the issue price of €0.72 or 4.3 per cent on the market price of €0.585 as at the reporting date.

The directors have also confirmed the payment of a gross dividend of €44,056 on preference shares for the year ended 31 December 2024.