| Mon 23 Jan 2012, 10:00 | | FBR - Famous Brands Limited - Famous Brands voluntary sales update |
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FBR
FBR
FBR - Famous Brands Limited - Famous Brands voluntary sales update
FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR ISIN code: ZAE000053328
("Famous Brands" or "the Group")
FAMOUS BRANDS VOLUNTARY SALES UPDATE
Johannesburg; 23 January 2012:
Famous Brands has delivered a satisfying performance for the three months
commencing October 2011 and ending December 2011, in line with management`s
expectations.
System-wide turnover (including new restaurants) grew 10%, while like-on-
like revenue increased 6.8% across the franchise network.
Chief Executive Officer, Kevin Hedderwick comments, "This is a very
pleasing performance given the prevailing subdued trading conditions, and
bearing in mind that many of Famous Brands` well-established mainstream
brands have immense restaurant networks, so growth is off a high base - for
example, Wimpy comprises 521 restaurants (excluding the UK), Steers: 532
restaurants, Debonairs Pizza: 370 restaurants, Mugg & Bean: 128
restaurants and FishAways: 123 restaurants.
Notwithstanding this, Hedderwick confirmed that these major brands all
delivered `stand out` performances. He also noted that the Group`s premium-
end offering, tashas, continued to show impressive growth.
During the period, 60 restaurants were opened across the Group`s network in
South Africa and a further 18 in Africa, the latter equating to 23% of new
restaurants opened, and a reflection of Famous Brands` success in gaining
traction in the region. Particularly strong growth was experienced in
Mauritius, Zambia and Nigeria. Of the Group`s brand portfolio, strongest
growth in new restaurant numbers was achieved by Debonairs Pizza and Mugg &
Bean. This trend is indicative of the continued robust growth of pizza
consumption amongst black consumers, whilst Mugg & Bean`s growth is
primarily attributable to the brand`s extended presence on Total Petroleum
forecourts.
During the quarter the Group launched its re-engineered new look Milky Lane
offering in Kimberley to very favourable response. Further roll-out of the
new identity will commence across the network in the near future. In
addition, the integration of Milky Lane`s soft serve business was completed
during the period, driving revenue up strongly at the Group`s Ice Cream
manufacturing plant.
Trading patterns over the December holiday period differed somewhat from
previous years, largely as a result of continued financial pressure on
consumers. "The traditional exodus of holidaymakers from inland to coastal
resorts took place much later than normal, and to a much lesser degree,"
explains Hedderwick. "Whilst our restaurants on transient routes and at
airports traditionally deliver extremely robust growth at this time, we
noticed that this was slightly more subdued than previously, however, the
performance of the Group`s restaurants in inland shopping malls was
stronger than traditionally expected."
The above financial figures have not been reviewed or reported on by the
Group`s external auditors.
ends
Notes to editors: The Group`s total franchise network as at end December
2011 comprised 2042 restaurants. The Group also manufactures and supplies
its franchisees and the retail trade with a wide range of meat, sauces,
spices, bakery, ice cream, fruit juice and mineral water products.
For further information:
Del-Maree English
Investor Communications Mobile: 083 395 8608
Famous Brands` website: www.famousbrands.co.za
Sponsor
The Standard Bank of South Africa Limited
Date: 23/01/2012 10:00:01 Produced by the JSE SENS Department.
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