{"id":4779,"date":"2024-06-13T18:10:04","date_gmt":"2024-06-13T16:10:04","guid":{"rendered":"https:\/\/famousbrands.co.za\/iar2024\/?page_id=4779"},"modified":"2024-06-20T17:48:00","modified_gmt":"2024-06-20T15:48:00","slug":"investment-committee-report","status":"publish","type":"page","link":"https:\/\/famousbrands.co.za\/iar2024\/governing-for-value-creation\/investment-committee-report\/","title":{"rendered":"Investment Committee report"},"content":{"rendered":"

Fagmeedah Petersen-Cook<\/h2>\n

CHAIRMAN<\/p>\n

\"Fagmeedah<\/p>\n

Attendance and composition<\/h2>\n\n\n\n
\n
Members<\/em><\/h5>\n<\/td>\n
\n
Invitees<\/em><\/h5>\n<\/td>\n
\n
Relevant skills profile of\u00a0members <\/em><\/h5>\n<\/td>\n<\/tr>\n
\n\t\t\tChairman <\/strong><\/p>\n
    \n
  • F Petersen-Cook (1\/1)<\/li>\n<\/ul>\n

    \t\t\tMembers<\/strong><\/p>\n

      \n
    • NJ Adami (1\/1)<\/li>\n
    • C Boulle (1\/1)<\/li>\n
    • SL Botha (1\/1)<\/li>\n<\/ul>\n<\/td>\n
\n
    \n
  • CEO<\/li>\n
  • Group Financial Director<\/li>\n
  • N Halamandaris<\/li>\n
  • Group Risk Executive<\/li>\n
  • Company Secretary<\/li>\n<\/ul>\n<\/td>\n
\n

Committee members are highly skilled in\u00a0investments, business strategy, and\u00a0finance.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Capital deployment in a volatile environment<\/h2>\n

Our operating environment remained challenging this year as\u00a0monetary policy tightening, geopolitical tensions and
\n\t\tsupply constraints weighed on the global economy. Locally, high unemployment and inflation continue to place
\n\t\tadditional pressure on consumers. <\/p>\n

In the last year, we evaluated our investments by considering the weaker global economic environment and domestic
\n\t\tfactors such as load shedding and poor economic performance. The Committee oversaw investments aimed at
\n\t\timproving efficiencies across our facilities and stores. This\u00a0includes optimising our Supply Chain and enabling
\n\t\ttechnology in our restaurants. <\/p>\n

After approving the purchase of\u00a0our\u00a0Midrand Head Office property in February\u00a02023, we proceeded with\u00a0the planning
\n\t\tand construction of a facility redevelopment plan, with the balance of this investment happening in 2025. The
\n\t\tredevelopment of the Midrand Campus will help us better align our Logistics footprint with our strategy. This
\n\t\tredevelopment includes developing new cold storage facilities and exiting our cold storage facilities at Crown
\n\t\tMines. We look forward to seeing how this\u00a0will improve efficiencies throughout the Group.<\/p>\n

As load shedding remains a concern for the business, we continued to invest in additional power supply, including
\n\t\tinstalling solar energy and more efficient generators at our facilities. About 95% of our Leading Brands
\n\t\trestaurants have alternative power solutions in place, and we have also made funding support available for
\n\t\tfranchise partners. <\/p>\n

In 2023, we oversaw the introduction of a new cell captive insurance vehicle for the Group. We\u00a0continued to
\n\t\tcapitalise the cell\u00a0captive in 2024.<\/p>\n

Advancing our consumer-facing technology capabilities is a key investment priority. This year, the\u00a0Committee considered and approved the acquisition of a shareholding in Munch Software, a\u00a0South African company that offers cloud-based POS and e-commerce solutions. This partnership will enable more efficiencies for our franchise partners through enhanced e-commerce capabilities. The acquisition is key to ensuring that we have sustainable POS systems and can leverage Munch Software\u2019s skills and insights throughout the business.<\/p>\n

Focus areas for\u00a02024 <\/h2>\n

During the year in review, the Committee evaluated and oversaw the following key investments:<\/p>\n