Advertise with fastmoving.co.za
 
 

Famous Brands
Famous Brands

Famous Brands gains some weight

FMCG SUPPLIER NEWS

Fin24 - May 23rd 2011, 07:36

Johannesburg - Food and beverages company Famous Brands on Tuesday reported a 17% rise in diluted headline earnings per share to 237 cents for the year ended February 2010 from 202 cents a year ago.  

Headline earnings per share were also up 17% to 242 cents.

Revenue was up 11% to R1.9bn, while operating profit grew 16% to R358m.

Total dividends per share for the year were up 36% to 155 cents. A final dividend per share of 85 cents was declared from 64 cents previously.

The group said that the year under review proved to be an exceptional one, both in terms of organic and acquisitive growth.

"Famous Brands benefited from strong sales during the 2010 Fifa World Cup and, despite fears to the contrary, our traditional peak trading period in December was also extremely robust," it said.

The group's local franchising division delivered a pleasing performance and made an important contribution to its results. Revenue increased 18% to R386m and operating profit improved 15% to R235m.

A total of 111 new restaurants were opened during the year, bringing the network to a total of 1 861 restaurants. In addition 81 existing restaurants were revamped.

The group's international franchising division was hit by trading conditions in the United Kingdom that were amongst the most difficult experienced in the past decade.

In this environment, revenue in sterling declined 21%, and in rand terms by 31% to R95m, while operating profit fell 23% to R11m.

"A further factor impacting these results was the termination of the Roadchef agreement which resulted in reduced turnover levels in the short term," the group said.

The company's logistics division grew revenue by 14% to R1.3bn.

Capital expenditure of R20m was invested in a range of projects including a state-of-the-art frozen storage facility in the Western Cape and racking and handling equipment at a number of other logistics centres.

Looking ahead, it said it expected trading conditions to remain difficult in the year ahead.

"Economic recovery will be muted and consumer spend will remain under pressure due to factors including electricity tariff hikes, increased fuel costs and the proposed toll road levies," Famous Brands said.

The group added that while acquisitive growth was the overriding feature of 2011, 2012 would be focused on consolidation.  

Related News

With large chunk of debt looming, Truworths’s UK business seeks a workaround
02/07/2019 - 10:40
Truworths International says its UK subsidiary, Office, is considering a debt restructuring ahead of a hefty repayment due in late 2020.

SA's war on plastic bags appears to be working
23/01/2019 - 08:40
With more restaurants saying no to plastic straws in South Africa, and amid a concerted effort from retailers to cut down on the use of one-time plastics in their products, the move against plastic appears to be is resonating with the wider public, too.

Long4Life acquires spa group Sorbet
18/07/2017 - 15:40
Brian Joffe’s new brainchild Long4Life has bought 100% of beauty therapy franchise Sorbet for a maximum R116m, to be settled through a combination of cash and Long4Life shares.

Famous Brands shares fall 2.96%
18/05/2017 - 10:31
The owner of Steers, Debonairs and Tashas warns headline earnings for the year will be between 15% and 25% lower.

Township retail booms
12/05/2017 - 11:37
Forget a sluggish national economy. Township retail is booming as major brands invest amid stalled CBD and suburban growth.