CHAMWE KAIRA
Famous Brands said SADC revenue increased by 3.8% to N$218 million (2023: N$210 million), with operations in Angola, Botswana, Eswatini, Lesotho, Namibia, Malawi, Mozambique, Zambia, and Zimbabwe.
“Our biggest markets, Botswana and Zambia, experienced increases in system-wide sales of 4.5% and 31%, respectively, along with like-for-like sales growth of 7.2% for Botswana,” the company said.
Famous Brands has said revenue decreased slightly by 1.3% to N$563 million (2023: N$570 million), the company said in financial results for the six months ended 31 August.
Operating profit improved by 5.6% to N$232 million (2023: N$220 million), and operating profit margin improved to 41.2% (2023: 38.5%).
Famous Brands said while business sentiment remains mixed, its focus remains to support its franchise partners through a tough economic cycle as the company emerges into the recovery of the economy.
Famous Brands subsidiaries include Debonairs Pizza, Wimpy, Mugg & Bean, Steers and FishAways Ltd., among others.
“We enter the second half of 2024 with slightly less uncertainty in the macroeconomic environment, considering the strengthening of the rand. Interest rate cuts may provide scope for a more positive consumer outlook. Although it takes time for positive sentiment to translate into consumer spending power, we believe it is trending in the right direction and we are cautiously optimistic about a degree of recovery in the second half of the year. Heading into our peak summer season, we have a solid pipeline of promotional activity planned,” the company said.
Famous Brands said it will continue to build iconic world-class brands as a responsible franchise operator, invest in consumer-facing technologies, and plan to open 89 new stores across the group in the second half of the 2025 financial year.
The company has operations across three continents and 18 countries.
Famous Brands operates franchised, master-licensed, and company-owned restaurants.
In terms of capital expenditure, the group invested N$91 million (2023 N$71 million) in capital expenditure across its markets for the reporting period. The group’s total borrowings position at 31 August 2024 was N$1.1 billion (2023: N$1.2 billion).
“We remain focused on managing and reducing our debt in the medium term. This includes adhering to stringent working capital measures and funding operational expansion through internally generated cash flow. Management has reduced debt levels by N$1.7 billion over the last seven years. Investment in our new cold storage facilities at our Midrand Campus will create some short-term pressure on this objective.
