Share

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.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.02
-0.6%
Rand - Pound
24.00
-0.4%
Rand - Euro
20.52
-0.3%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.6%
Platinum
900.40
+0.4%
Palladium
998.40
-0.3%
Gold
2,212.97
+0.8%
Silver
24.70
+0.2%
Brent Crude
86.09
-0.2%
Top 40
68,068
+0.6%
All Share
74,264
+0.5%
Resource 10
56,909
+2.2%
Industrial 25
103,553
+0.3%
Financial 15
16,463
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders