Johannesburg - Restaurant group Famous Brands on Monday reported a 33% rise in diluted headline earnings per share to 141c for the year ended February 2008.
A final dividend of 33c was declared, compared with 30c the
same time a year ago and resulting in a per share distribution for the year of 66c compared with last year's 48c - an increase of 38%.
Revenue rose 36% to R1.2bn and operating profit was up 52% to
R209.5m.
Famous Brands, which owns sit-down restaurants such as Wimpy and Steers, said the year under review was unique in that it presented two distinct halves, the group said.
"During the first half, good trading conditions were experienced.
Traditionally the second half shows stronger growth, however with economic factors such as the increases in interest rates, fuel prices, raw material input costs and exceptionally high food inflation, trading conditions slowed down," it noted.
The local franchise division contributed significantly to the group's overall performance returning growth in revenue of 14% to R260m and an operating profit increase of 27% to R142m.
System wide sales across the group's brand portfolio grew by 14% and like-on-like restaurant growth was 9%.
A total of 106 new restaurants were opened and 116 existing restaurants were revamped during the period, the group said.
Further pressure ahead
Chief operating officer Kevin Hedderwick said the number of new
restaurants was fewer than the previous year because of a general slowdown in the economy and the impact of new developments being put on hold by developers due to uncertainty surrounding the national power shortage.
The international franchise division, consisting of Wimpy UK and the group's offshore financial holdings in Cyprus, contributed R175m in gross revenue and operating profit of R15m.
Hedderwick added that the group's entry into the UK market, via the acquisition of the Wimpy brand, remained on track.
The manufacturing division posted revenue of R506m and operating profit of R48m.
The logistics division, a key component of Famous Brands' unique
backward integrated franchise system, continued to grow in stature, contributing revenue for the year of R692m and an operating profit of R15m.
In the period the relocation of the KwaZulu-Natal regional warehouse and distribution centre and the Eastern Cape warehouse and distribution capacity upgrade were completed as was the first phase take on of the Wimpy distribution business.
The food services division, established to source quality business for the group's brands where spare manufacturing capacity exists, continued to make encouraging gains, the group said.
Looking ahead, Hedderwick said while there was likely to be further pressure on consumer spend during the year ahead, he was confident that consumers would target their spending at well known and trusted brands.
- I-Net Bridge