Voluntary sales update Famous Brands enjoys robust holiday trading

Famous Brands enjoys robust holiday trading

FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR
ISIN code: ZAE000053328
(“Famous Brands”)
REVENUE
Up 12% to R1 013m
HEADLINE EARNINGS PER SHARE
Up 9% to 125 cents
OPERATING PROFIT
Up 8% to R184m
INTERIM DIVIDENDS PER SHARE
Up 14% to 80 cents

Famous Brands has reported strong sales over the December holiday season, countering concerns that performance would be restrained following on from exceptional turnovers achieved during the World Cup period. System wide retail sales (including new restaurants) increased 13.3% on the prior comparative period, while like-on-like sales grew 7.8% across the franchise network.

Chief Executive Officer, Kevin Hedderwick says, “There was some apprehension that December turnovers would be soft post the strong consumer spend experienced during the World Cup.

However, I am pleased to report that we surpassed our expectations to deliver an overall excellent performance. Without exception, each of the Group’s brands improved like-on-like sales.”

20 restaurants were opened during December and the Group remains on track to meet its target of opening 110 new restaurants in the current fiscal year, bringing the total franchise network to 1883.

Hedderwick notes that these results are a reflection of the Group’s portfolio of well established brands which enjoy strong consumer equity and a function of their presence in key strategic sites in shopping malls, airports, coastal resorts and on transient routes nationwide.

“In this regard, Wimpy and Mugg & Bean did particularly well,” says Hedderwick. “In addition, Debonairs Pizza continues to benefit from the remarkable growth in per capita pizza consumption amongst the emerged market. In fact, this trend is now even beginning to spread to previously un-serviced rural areas. Our Debonairs Pizza Express stores which target emerging market consumers were 49% ahead of budget for the month.”

“The robust performance delivered by the Group’s mainstream brands was complemented by very pleasing turnovers achieved by our recently acquired brands. tashas’ new Gateway restaurant traded exceptionally vigorously, thereby securing a strong base for the brand in KwaZulu Natal. Notwithstanding aggressive anti-drink/driving campaigns, the Group’s pub brands, KEG, McGinty’s and O’Hagan’s did very well, while Vovo Telo, our niche artisan bakery business produced satisfying results.

Famous Brands’ chicken offering, Giramundo, is situated in low profile sites which didn’t benefit from December holiday trade but still performed in line with management’s expectations” says Hedderwick.

The financial figures above have not been reviewed and reported on by the Group’s external auditors.

 

 

Notes to editors:

The Group’s brand portfolio includes Steers (524], Wimpy including UK (642), Debonairs Pizza (315), FishAways (112), Mugg & Bean (108), tashas (6), House of Coffees (19), Brazilian/Brazilian Café (48), Blacksteer (12), Giramundo (6), Keg (27) and McGinty’s (5), Vovo Telo (3) and O’Hagan’s (26). The Group also manufactures and supplies its franchisees and the retail trade with a wide range of meat, sauce, bakery, ice cream, fruit juice and mineral water products.

For further information:

Kevin Hedderwick
Chief Executive Officer
Famous Brands Ltd
Telephone: 011 651 5812
Del-Maree English
Investor Communications
Mobile: 083 395 8608