Frou-Frou hikes dividend as profits improve

Alkis Hadjikyriakos (Frou Frou Biscuits) Ltd., the island’s leading biscuits and cereals manufacturer & distributor and importer announced an increase in its final dividend payable to shareholders on the back of an improvement in sales and profits.

The Board of Directors declared a dividend of 0.36 cent per share compared to 0.35 cent in 2003 for a yield of 3.5%. Total turnover jumped 6.5% to CYP 12.12 mln from CYP 11.38 mln as the company reaped the benefits from a previous reorganisation whereby slow-moving goods were dumped and new range of products brought in, as well as on higher cereals sales.

Gross profit improved to CYP 5.44 mln from CYP 5.09 mln in 2003 with the gross profit margin to sales improving to 44.9% in 2004 from 44.8% in 2003. Operating profits were however flat at CYP 1.22 mln from CYP 1.22 mln in 2003. FBI said it is taking action to reduce its sales & distribution expenses, the results of which will be evident during 2005.

Pretax profits amounted to CYP 1.1 mln from CYP 900.456 in 2003 while net after tax profits attributable to shareholders jumped to CYP 1.016.221 in 2004 from CYP 802.820 in 2003. Earnings per share climbed to 1.13 cent from 0.90 cent.