Famous Brands Toughs It Out

Business Report:

Famous Brands, the quick service restaurant and casual dining franchisor, on Monday reported a 7 percent increase in diluted headline earnings per share to 78 cents for the six months ended August from 73 cents a year ago.

An interim dividend of 36 cents was declared, up 9 percent from the previous year. Gross revenue was up 25 percent to R714 million and operating profit was up 13 percent to R124 million.

Chief operating officer Kevin Hedderwick described the macro-economic trading conditions in the first half of the year as the toughest the group had experienced in ten years.

“This latest performance is a testament to the strength of the Group’s brands and the known gravitation by consumers towards tried and tested brands in times of economic downturn,” said Hedderwick.

Profitability during the first six months of the year was adversely affected by the group’s deliberate strategy of absorbing costs within the manufacturing and logistics divisions to the combined value of R10.25 million.

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