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FBR
FBR
Famous Brands - Famous Brands enjoys Robust quarter, with more to follow
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")
Voluntary Announcement: Famous Brands enjoys Robust quarter, with more to
follow
System wide retail sales up 21%
Like-on-like retail sales up 13%
Food Services division turnover up 20%
32 new restaurants opened
Record September turnover for Steers and Wimpy
Notwithstanding interest rate increases and increased input costs, Famous Brands
enjoyed a robust quarter for the period 01 July to 30 September 2006, with
Steers and Wimpy reporting record turnovers for September.
Chief Operating Officer, Kevin Hedderwick says: "In line with the broader
retail environment, there appears to be a slight cooling in consumer spend,
experienced particularly in our restaurants located in the major shopping malls.
However we continue to benefit from the trends which contextualise our business
- the demand for convenience, manifested by the shift to out of home consumption
and the establishment of quick service restaurants and casual dining as a way of
life."
The continued demand for the group"s brands is borne out by figures reported for
the quarter: system wide retail sales (including new restaurants) rose 21% on
the prior comparative period, while like-on-like retail sales grew 13% across
the franchise network.
The franchise network expanded by 32 stores nationwide over the period. The
total network now comprises 1 237 restaurants, with approximately 30 further
restaurants to be added by the end of the current financial year.
"There is no shortage of interest in the group," says Hedderwick. "We receive
up to 1 000 enquiries monthly from potential franchisees."
The successful conversion of Bimbos stores to Steers restaurants continued, with
16 of a potential 26 restaurants having undergone conversion. The conversion of
Whistle Stop outlets to Steers Diners restaurants also progressed well and will
number nine by December.
Benefitting from increased retail sales, turnover from the Food Services
division rose 20.4% for the period.
Revenue for Trufruit and Baltimore, the group"s fruit juice and ice cream
businesses, is ahead of the previous quarter and the prior comparative period.
Hedderwick says that management has high expectations of a strong performance
from both these operations in the peak trading season.
Hedderwick concludes: "Protein price increases, the current shortage of hake
and further interest rate increases will pose challenges in the forthcoming
period. Despite that, we are confident that holiday season trading will be
favourable for the group. Our brands have undergone intensive preparation, they
will be supported by prudent investment in electronic media campaigns and our
representation on mainstream consumer sites including major shopping malls,
principal transit routes, coastal resorts and at national airports positions us
well to capitalise on positive festive season consumer sentiment."
Midrand
7 December 2006
Sponsor
Java Capital (Proprietary) Limited
Date: 07/12/2006 10:00:05 AM Produced by the JSE SENS Department
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