Famous Brands, owner of the Steers, Wimpy, Mugg & Bean and Debonairs Pizza brands, has unveiled its three year strategic roadmap. The group has also reported a 6.4% increase in sales across all restaurants in SA, with 2.9% like-for-like sales growth for the financial year ended February.
Annual revenues for the group rose by 1% to R7.8bn ($447m), while operating profit rose 7.7% to R912m ($52.3m). The group’s results have been positively impacted by an improvement in its Gourmet Burger Kitchen brand and the disposal of its lossmaking Coega Concentrate tomato paste plant.
Famous Brands has accelerated the implementation of the roadmap as a result of the COVID-19 pandemic and the need to reduce costs and preserve cash. CEO Darren Hele said the group planned to grow its leading brands and retail business and build depth in its rest of Africa and Middle East (AME) footprint. It will disinvest from non-core brands. The group has 24 restaurant brands, 2,898 restaurants across South Africa, the rest of Africa and the Middle East and UK. It also owns logistics and manufacturing operations.
Famous Brands did not declare a dividend, citing the need to preserve cash. Nonetheless, its shares rose on the JSE on the back of its trading statement and strategic roadmap.
