South African Quick Service Restaurant (QSR)/casual dining franchisor Famous Brands (FBR) reported a 35% increase in fully diluted headline earnings per share of 106.3 cents for the year ended February from 78.7 cents a year ago.
A capital distribution of 30 cents per share has been proposed, bringing the total distribution for the year to 48 cents, up from 30 cents in 2006.
The group also reported record turnover and profit, and best-ever new restaurant growth.
Turnover was up 30% to 872.1 million rand, while operating profit grew 26% to 137.8 million rand. Headline earnings were up 38% to 99.7 million rand.
These excellent results are in part attributable to improvements derived from the business model restructuring, which has leveraged synergies and unlocked value, and will continue to do so. Also contributing to this performance is the current bullish economic environment and strong consumer affinity for the group’s offerings,” said Chief Operating Officer Kevin Hedderwick.
The Franchising and Food Services divisions both delivered high quality performances, he added.
“It is encouraging to report that margins improved from 16.3% to 17.3% across the divisions as a result of extracting efficiencies from existing and new capacity in the business,” he added.
During the period, the group acquired a 75% stake in Wimpy UK in a low risk/low cost strategy affording optimal entry into a first world economy.
The remaining 25% shareholding is owned by Halifax Bank of Scotland.
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