| Fri 2 Dec 2005, 12:00 | | Famous Brands Limited - Another saucy quarter for |
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Famous Brands Limited - Another saucy quarter for Famous Brands
Famous Brands Limited
(Incorporated in the Republic of South Africa)
(Previously Steers Holdings Limited)
(Registration number 1969/004875/06)
Share code: FBR & ISIN code: ZAE000053328
ANOTHER SAUCY QUARTER FOR FAMOUS BRANDS
* Average system wide turnover improves 18%
* Debonairs Pizza grows revenue 30%, opens 200th restaurant and optimises
business model
* "Sleeping Giant" FishAways delivers 75% growth in turnover
* Group"s Airport restaurants produce record growth
* Food Services division commences take on of Wimpy business
Johannesburg, 02 December 2005: The quarter commencing September 2005 has been
an eventful one in the build up to Famous Brands" (FBR) peak trading holiday
season. For the review period, system wide turnover increased 18% reflecting
robust growth from existing restaurants, complemented by revenue achieved from
the addition of a further 45 restaurants over the past three months across the
group"s franchise network.
Highlights for the quarter include a 30% improvement in system wide turnover at
Debonairs Pizza and the opening of the brand"s 200th restaurant, located in the
Sandton City shopping mall, an event which is particularly noteworthy, since the
brand was initially launched in 1991 as a home delivery offering.
Kevin Hedderwick, Famous Brands" Chief Operating Officer says: "Debonairs
Pizza"s home delivery concept is as strong as ever, but we are witnessing a
parallel development which is the robust growth of these restaurants in prime
shopping malls."
Vigorous double-digit turnover growth was experienced across the group"s brand
portfolio, but particularly noteworthy was the 75% improvement in system wide
revenue reported by FishAways.
Hedderwick comments: "While this growth is off a low base, the potential for
this brand is enormous. Seafood is gaining momentum as a category - it offers a
healthy, convenient protein option. We are confident that with the brand"s
increased footprint and accessibility, growth will be exponential." FishAways
has opened 15 restaurants over the past 12 months, recently reaching the 50
outlet milestone.
The review quarter witnessed another interesting trend, with the group"s airport
restaurants delivering record performances. Hedderwick explains that the
competition between low cost airlines has dramatically increased the number of
consumers at airports. He notes that the success of the group"s existing and
recently opened restaurants at airports nationwide will ensure that further
prospective sites are vigourously explored.
On 16 November Famous Brands announced the acquisition of 38 Bimbo"s franchise
agreements relating specifically to Engen sites, with a view to converting these
to Steers restaurants.
Hedderwick says: "Good progress is being made in securing the necessary
franchise conversion agreements, a condition precedent of the deal. We are
confident that once converted, these restaurants have the potential to double
their existing turnover."
The anticipated revenue stream is twofold, namely standard franchise fees from
the restaurants, and secondly, the addition of a new market for the group"s Food
Services division which will supply the basket of products required by these
Steers franchises.
Over the past quarter, significant advancements have been achieved in preparing
the group"s Food Services division for the take on of the Wimpy food services
supply business.
"Enhancements in this division have enabled us to start manufacturing a
selection of Wimpy sauces, which were previously supplied by third party
vendors. This marks the commencement of our take on of the Wimpy food services
business," says Hedderwick.
Hedderwick concludes: "Increasingly retailers are reporting that they are
beginning to experience a subtle slowdown, as trading activity shrinks. While
it is likely that the very high levels of growth on top of growth may not be
sustainable, we are satisfied that the food service categories in which we
participate still offer substantial upside growth potential."
He says: "Famous Brands has had an inspiring quarter, exceeding expectations and
laying solid foundations for the peak season and the new year. We are bullish
about trading performance in December and January."
Rosebank
2 December 2005
Sponsor
Java Capital (Proprietary) Limited
Fax: +27 (0) 86 686-8447
Date: 02/12/2005 12:00:06 PM Produced by the JSE SENS Department
