Famous Brands reports thinner profits and looks at divesting from non-core assets
In a tough spending environment, the group is rethinking the scope of its offerings.
Steers burger and Chips. Picture: x.com/SteersSA
Bruce Whitfield speak to Darren Hele, CEO of Famous Brands.
The Famous Brands group plans to sell some of the businesses into which its invested into in recent years.
The business reported lower full-year earnings, largely due to a drop in consumer spend.
It's previously sold its stake in Tashas back to its founder Natasha Sideris.
Now, in a really tough spending environment, Famous Brands is once again rethinking the scope of its offerings.
Famous Brands has a presence in 18 countries, operating 2914 restaurants across 16 restaurant brands, which includes Steers, Debonairs, Wimpy and Fishaways in South Africa.
But the economic situation in the country has been tough on consumers, who are facing several challenges, including political uncertainty, water shortages, an electricity crisis, elevated food & fuel prices and higher interest rates.
Speaking to Bruce Whitfield on The Money Show, Darren Hele, CEO of Famous Brands says they have to rethink some of its business operations.
"We are involved in a lot of activities, so we're rethinking a few of those. Not just brands...we are involved quite a lot in the supply chain, and of course doing work in Africa."
- Darren Hele, CEO - Famous Brands
"We just really want to try and get focus back into the business we have been doing for some time, but there's always been some distraction. A macro event, like Covid or flooding...something to keep you off strategy."
- Darren Hele, CEO - Famous Brands
The Group announced its annual results for the year ended 29 February 2024, with revenue up 8% to R8 billion (2023: R7.4 billion)
Cash generated from operations is up 13% to R1.1 billion (R961 million), however operating profit is down 6% to R812 million (2023: R861 million)
Headline earnings per share is down 5% to 465 cents (2023: 488 cents)
"The market is competitive, so you need to make sure that what you're doing, you're doing damn well. That takes up a lot of bandwidth and time, and of course, resources are limited.
- Darren Hele, CEO - Famous Brands
"We've got to make it work for us. People have got lots of options. It's the digital age, they can spend their money on other things."
- Darren Hele, CEO - Famous Brands
Scroll to the top to listen to the full interview.