Fin24

Famous Brands earnings up, declares dividend

2012-10-22 10:59

Johannesburg – Famous Brands [JSE:FBR] on Monday reported a 22% jump in diluted headline earnings per share for the six months ended August to 147 cents from the 120c recorded the previous year.

“Trading conditions remained competitive but stable‚ with the key driving forces in the industry being the unrelenting demand from consumers for a convenient value proposition‚ and their gravitation to tried-and-tested brands in the context of constrained disposable income‚” Famous Brands said.

The group’s profit increased by 17% to R1.18bn and its operating profit added 12% to R184m.

“To date the existing business model has served the group well‚ but in order to ensure sustained growth of this vastly transformed enterprise‚ management has undertaken a major strategic intervention to build a 'fit-for-purpose' business model which will support future expansion of the group‚” the group said.

The company declared an interim dividend of 108c‚ which constitutes an increase of 35%.

The group expects the current trading conditions in the country to remain unchanged for the foreseeable future.

“It is anticipated that consumer spend will remain under pressure‚ which together with hyper-inflation in diesel and utility prices‚ will serve to impact negatively on the group's margins.

"Notwithstanding this environment‚ management is optimistic that the business is well positioned to capitalise on growth opportunities as they develop‚” Famous Brands added.