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Johannesburg - Famous Brands released "satisfactory" results in exceptionally difficult trading conditions, the listed casual dining company said on Monday as it released its interim results.
"Across the quick service and casual dining market, fierce competition is the order of the day, with all players focused on defending and growing market share," said Kevin Hedderwick, chief operating officer.
"The modest gains in consumer disposable income, made available through interest rate cuts and lower fuel prices, appear to have been directed at paying off personal debt," he said.
For the six months ended August 31, 2009, group revenue rose 14% to R811.4m.
Operating profit of R139.8m was up 13%, reflecting hardly changed operating profit margin of 17.2%.
The company said that both earnings and headline earnings per share increased by 16% to 93c.
Hedderwick said trading conditions in the developed world were more difficult and the group's Wimpy operations in the United Kingdom experienced a consequent reduction in turnovers.
Looking ahead, he said the company expected the current difficult trading conditions to continue.
However, Famous Brands was confident it was positioned to capitalise on any improvements in the months ahead and in particular during the holiday season through its strong representation at transient sites, coastal resorts and major shopping centres.
Famous Brands "footprint", including Steers, Debonairs Pizza, FishAways, Wimpy and Mugg & Bean, extends to 723 restaurants across South Africa, 17 other African countries and the UK.
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