No dividend from Famous Brands though interim profit rose sharply
Famous Brands, whose franchises include Debonairs Pizza, Wimpy and Steers, reported a 62% jump in interim aftertax profit to R411m on 23% growth in revenue to R2.45bn for the six months to end-August. Aftertax profit was boosted by a R121m one-off gain — R141m from a rand hedge on its £120m acquisition of UK chain Gourmet Burger Kitchen, which was reduced by a R20m write-down of an investment in Nigeria. No interim dividend was declared to help reduce debt following a string of acquisitions done during the reporting period. Famous Brands paid a R1.90 interim dividend in the year-earlier period. As of August 31, the group operated 2,626 restaurants in numerous countries. It opened 75 new restaurants during the reporting period, 64 of which were in SA. "Having undergone an extensive corporate identity revamp, both Wimpy and Steers reported pleasing double-digit growth, reflecting customers’ positive response to their contemporary new image," CEO Darren Hele said in the results stateme...
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