Following the conclusion of its two-year 'Vision 2015' strategy, JSE-listed Famous Brands would now embark on a five-year strategy set to heighten the competitiveness of the food services business. The group, which recorded its fourteenth consecutive year of growth in the 2015 financial year, on Monday announced the successful execution of its ambitions of becoming “Africa’s first choice integrated branded food services franchisor by 2015.”
“During the reporting period, the group successfully concluded the achievement of this goal through its ongoing strategy of leveraging skills and scale across the three pillars of its business, [namely] brands, manufacturing and logistics,” Famous Brands said in its 2015 year-end financial results announcement to the market. Now, to leverage its already strong position, the company would initiate its 2020 strategy to compete aggressively as “one of the leading branded leisure and consumer product businesses in Africa and selected international markets.”
“The key tenet of this strategy is the diversification of the group through leveraging capabilities and building scale across the core pillars of the business,” the company noted, pointing out that the required investment would continue to be made in people, processes and systems.
This emerged as Famous Brands reported record turnover, operating margin and profit for the year ended February 28. The group’s headline earnings a share improved 15% year-on-year to 467c, while basic earnings a share rose to 468c, from the 406c achieved in the prior year. Famous Brands’ profit for the year surged 20% to R484m, while operating profit rose 19% to R672m. A “best-ever” operating margin of 20.5% was achieved during the period under review. Revenue rose 16% to R3.3bn and a record number of 258 new restaurants were opened in the year. The group remained ungeared and reported net cash on hand of R126m. The company declared a dividend for the year of 355c, an 18% rise on the year before.