Famous Brands gains some weight
Johannesburg - Food and beverages company Famous Brands [JSE:FBR] on Tuesday reported a 17% rise in diluted headline earnings per share to 237 cents for the year ended February 2010 from 202 cents a year ago.
Headline earnings per share were also up 17% to 242 cents.
Revenue was up 11% to R1.9bn, while operating profit grew 16% to R358m.
Total dividends per share for the year were up 36% to 155 cents. A final dividend per share of 85 cents was declared from 64 cents previously.
The group said that the year under review proved to be an exceptional one, both in terms of organic and acquisitive growth.
"Famous Brands benefited from strong sales during the 2010 Fifa World Cup and, despite fears to the contrary, our traditional peak trading period in December was also extremely robust," it said.
The group's local franchising division delivered a pleasing performance and made an important contribution to its results. Revenue increased 18% to R386m and operating profit improved 15% to R235m.
A total of 111 new restaurants were opened during the year, bringing the network to a total of 1 861 restaurants. In addition 81 existing restaurants were revamped.
The group's international franchising division was hit by trading conditions in the United Kingdom that were amongst the most difficult experienced in the past decade.
In this environment, revenue in sterling declined 21%, and in rand terms by 31% to R95m, while operating profit fell 23% to R11m.
"A further factor impacting these results was the termination of the Roadchef agreement which resulted in reduced turnover levels in the short term," the group said.
The company's logistics division grew revenue by 14% to R1.3bn.
Capital expenditure of R20m was invested in a range of projects including a state-of-the-art frozen storage facility in the Western Cape and racking and handling equipment at a number of other logistics centres.
Looking ahead, it said it expected trading conditions to remain difficult in the year ahead.
"Economic recovery will be muted and consumer spend will remain under pressure due to factors including electricity tariff hikes, increased fuel costs and the proposed toll road levies," Famous Brands said.
The group added that while acquisitive growth was the overriding feature of 2011, 2012 would be focused on consolidation.