Famous Brands warns of R874m impairment | Fin24
 
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Famous Brands warns of R874m impairment

Oct 15 2018 12:03

Famous Brands has decided to recognise an impairment of R874m pre-tax at group level, it announced on Monday.

Though basic headline earnings per share (HEPS) were expected to range from 175 cents per share to 194 cents per share (an approximate increase of 3% - 14% from 2017), the basic loss per share was expected to be up to 623 cents per share, a decrease of up to 465%, the group added in a trading statement.

In the same period in 2017, basic earnings were 171 cents per share.

Famous Brands – which has among others Steers, Wimpy, Debonairs, Fishaways, Milky Lane and Tashas in its portfolio – said it had a “reasonable degree of certainty” that its financial results for the six months ended August 31, 2018 would differ by at least 20% from those reported in the same period in 2017.

The Group’s share price had fallen by nearly 7% to R94.94 per share by 11.06, following the release of the statement earlier on Monday morning.

In August, Famous Brands said it was expecting stronger results than in the prior comparable period, thanks to improved performance by the SA and AME operations. These operations were expected to record a solid increase in operating profit despite product recalls following a major listeriosis outbreak in South Africa.

British chain Gourmet Burger Kitchen, however, was expected to report a larger loss.

In Monday’s statement, Famous Brands said GBK had recorded an operating loss of £2.6m (R49.4m) for the review period, compared to a loss of £870 000 during the same period in 2017.

Results are expected to be announced at the end of October.

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