Famous Brands is satisfied that a reasonable degree of certainty exists that the Group’s financial results for the six months ended 31 August 2019 (“the review period”) will differ by at least 20% from those reported for the six months ended 31 August 2018 (“the prior comparable period”), and thus is in a position to issue this trading statement in terms of Section 3.4(b)(i) of the Listings Requirements of the JSE Limited.
On 11 September 2019, the Group published a voluntary performance update (“the update”) for its South African (“SA”) and Rest of Africa and Middle East (“AME”) operations for the six months ended 31 August 2019, as well as for the Group’s GBK Restaurants Limited (“GBK”) business, for the 26-week period ended 25 August 2019.
The update advised that the Group’s results for the six months ended 31 August 2019 are in line with management’s expectations.
- Brands: revenue growth was recorded across the SA and AME operations. In the UK, GBK’s results are in in line with management’s projections, with the business continuing to benefit from extensive operational improvements and the Company Voluntary Arrangement (“CVA”) restructuring programme completed over the past year.
- Manufacturing: a marginal decline in sales was reported by the division due to the loss of a major client in the Lamberts Bay Foods’ business.
- Logistics: revenue growth of 3% was recorded, however, margins deteriorated materially due to softer sales; planned once-off costs related to the relocation of the Free State facility; sustained low food inflation; and our strategy to support franchisees through absorbing margin pressure.
There has been no change to the information provided in the update.
Basic earnings per share (“EPS”) are expected to be within the range of 143 cents per share to 175 cents per share; this is an approximate improvement of 125% to 131%, compared to the prior corresponding period’s basic loss of (572) cents per share. The anticipated increase in EPS relates primarily to recognition of an impairment of R874 million in the GBK UK business in the prior comparable period; no impairment has been recognised for the current review period.
The Group’s results for the review period will be released on SENS on or about Monday, 28 October 2019.
A live audio webcast of the results will be held at 10h00 (SAST) on 28 October 2019.
To pre-register link to: www.corpcam.com/FamousBrandsOctober2019
The financial information on which this trading statement is based has not been reviewed or reported on by the Group’s external auditors.
4 October 2019