CHAMWE KAIRA
Famous Brands Limited is planning a major rollout in southern Africa including Namibia. Its brands include Steers, Debonairs Pizza, Fishaways, Mugg and Bean and Wimpy. These brands have a strong presence in Namibia.
The company said in results for the year ended 29 February 2024 that it plans to implement its leading brands restaurant rollout plan in South Africa, the Southern African Development Community (SADC) and also in Cote d’Ivoire, Ethiopia, Kenya, Nigeria, Mauritius, Saudi Arabia, and the United Arab Emirates.
“This includes boosting our drive thru presence as new sites become available. We will continue to invest in consumer-facing technology and improve our own home delivery capabilities. Furthermore, we will safeguard the sustainability of our franchise partners by continuing to offer a lower royalty rate for sales generated during load shedding,” the company said.
The company said South African consumers face several challenges in 2024, including political uncertainty, water shortages, an electricity crisis, elevated food and fuel prices and higher interest rates.
“Despite this background, consumers are more resilient and spend time at restaurants or order take away meals. Restaurants and take aways offer affordable indulgent moments as a reprieve from their daily challenges. The landscape favours established networks over independent operators,” it said.
The company’s revenue increased by 8% to R8 billion (2023: R7.4 billion). Operating profit decreased by 6% to R812 million (2023: R861 million). The board declared a final dividend of 164 cents per share, bringing the total dividend for the year to 302 cents per share.
The SADC market includes Angola, Botswana, Eswatini, Lesotho, Namibia, Malawi, Mozambique, Zambia, and Zimbabwe. Revenue increased by 4% to R409 million (2023: R395 million). Operating profit improved to R55 million (2023: R50 million). The operating profit margin was 13.4% (2023: 12.7%).
The group operates in Cote d’Ivoire, Ethiopia, Kenya, Nigeria, Mauritius, Saudi Arabia, and the United
Arab Emirates. Revenue in these countries increased by 68% to R55 million (2023: R33 million). Operating loss was R14 million (2023: (R26 million).
“Furthermore, we will safeguard the sustainability of our franchise partners by continuing to offer a lower royalty rate for sales generated during load shedding. In the medium term, we will evaluate opportunities to divest from non-core assets. We seek optimal disposal options of such assets to unlock value for shareholders. We will maintain a well-managed debt profile and continue to provide attractive returns to shareholders,” the company said.
