Famous Brands has posted yet another year of record turnover and profits, its fifteenth consecutive year of exceptional growth.
Famous Brands has posted impressive financial results, with revenue increasing by 31%, headline earnings 16% and dividends up 14%.
Famous Brands recently made the results of its latest financial year public. And once again – for the fifteenth year in a row – it has posted record-breaking figures.
The Famous Brands Group’s revenue has increased by 31% to R4,3 billion, up from R3,3 billion in 2015. The group’s operating profit rose 18% to R792 million from R672 million in 2015. Thanks to inflation, the company’s operating margin dropped from 20,5% in 2015 to 18,4% – which makes Famous Brands’ growth in revenue and profits even more impressive.
Group CEO Kevin Hedderwick – who announced a few months ago that he would be stepping down – said the following about the results: “The stellar results and accomplishments achieved during the period are irrefutable evidence of how the business continues to flourish, despite the current adverse climate. The commitment required to turn in consecutive sets of record results in challenging conditions is a function of the unwavering culture of competitiveness and desire to win, combined with the relentless energy and audacious ambition of the management team and the people of Famous Brands.
“Stand-out performances were recorded by our mainstream brands, Steers, Wimpy, Debonairs Pizza, Mugg & Bean, FishAways and Milky Lane. Our emerging brands also delivered satisfying results, with a particularly strong performance reported by Turn ’n Tender. We furthered our goal to expand the Group’s presence in the casual evening dining trade segment by launching new brand concepts and establishing a number of key joint ventures,” says Hedderwick.
Indeed, Famous Brands made three key acquisitions in the casual dining space over the financial year. It purchased 51% of Lupa Osteria, an Italian restaurant business that focuses on casual dining, as well as a major stake in Mexican fast-casual chain Salsa Mexican Grill. Lastly, it also invested in Catch – an upmarket seafood and sushi franchise.
The year ahead
Famous Brands appears to have identified more prospects that will enable the group to make the upcoming year yet another successful one.
“Management has identified a multitude of initiatives to continue building capability and capacity across the three pillars of its business, Franchising, Logistics and Manufacturing. In addition to organic growth opportunities, exciting new prospects are presented by the planned opening of 292 franchise restaurants in the year ahead; assimilating the new joint venture brands, PAUL, Lupa Osteria, Catch and Salsa Mexican Grill; and integrating the manufacturing operation of Lamberts Bay Foods. The board is satisfied that the platform for continued growth is firmly in place, comprising an accomplished executive management team, optimally structured business model and a pipeline of opportunities to continue to meet stakeholder expectations,” says Hedderwick.
Reference: BizConnect – www.bizconnect.standardbank.co.za