Revenue jumped to R6.5 billion (2021: R4.7 billion) and operating profit before impairment of intangible assets shot up to R654.6 million (2021: R294.7 million). Profit for the year attributable to owners of Famous Brands turned around to R317.7 million (2021: loss of R1.2 billion). In addition, headline earnings per share from continuing operations leaped to 356 cents per share (2021: 53 cents per share).
The Board has declared a dividend of 200 cents per share. The Group has produced significantly improved results which enabled the Board to consider paying a dividend. The Board considered the Group’s current performance and future prospects. The dividend is being paid out of profits for the year ended 28 February 2022 in the amount of R200 million.
Our focus in 2023 is on operational excellence, prioritising core long-term operations and improving investment returns for franchise partners.
Our short-term focus is to sustain our revenue while achieving positive cash generation, while our medium-term focus is to recover margin. We have reduced our interest-bearing debt in 2022 and expect to continue on this trajectory in 2023.
Our financial and investment decisions in the coming year will be based on the following strategic imperatives:
- Growing our Leading Brands in South Africa and AME.
- Intensifying investment in high return assets.
- Considering attractive and appropriate acquisitions.
- Divesting from non-core activities.
- Expanding our Logistics capacity.
For the next three years, our strategic focus is generating growth from our existing Leading Brands portfolio through innovation in channels, formats and footprint expansion. We will continue to invest in consumer-facing technology to enhance our value proposition to customers and franchise partners.
In our Manufacturing division, we are driving operational efficiencies and managing and reducing our environmental footprint. We will invest further into our best-performing manufacturing facilities and divest from selected manufacturing operations if necessary.
In Logistics, our next steps are to relocate our KwaZulu-Natal Distribution Centre, move our Gauteng cold storage centre and secure a cross- docking facility near Mthatha.
We remain on track to double our Retail business by growing our distribution footprint and expanding our product range. We are executing our ambitious plans to launch a minimum of 12 new products in the year ahead.