Wrap Text
Unaudited Condensed Consolidated Interim Financial Results for the six months ended 31 August 2025
Famous Brands Limited
Incorporated in the Republic of South Africa
Registration number: 1969/004875/06
JSE share code: FBR | A2X share code: FBR | ISIN code: ZAE000053328
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2025
Dividend per share
162 cents
8.0%
Revenue
R4.2 billion
5.6%
Operating profit
R393 million
5.8%
Headline earnings per share (HEPS)
236 cents
8.0%
Group profile
Famous Brands is Africa's leading food services franchisor, with restaurants in South Africa, Southern African
Development Community (SADC), the Rest of Africa and the Middle East (AME) and the United Kingdom (UK). Our
vertically integrated business model comprises four pillars: Brands, Manufacturing, Logistics and Retail.
Our portfolio of 15 iconic restaurant brands appeals to consumers across income and demographic bands, meal
preferences and value propositions. The portfolio is segmented into Leading Brands (mainstream) and Signature
Brands (niche). Leading Brands are further categorised as Quick Service Restaurants (QSR) and Casual Dining
Restaurants (CDR). Our QSR brands prioritise takeaway and delivery with smaller sit-down areas, while CDR brands
offer a full-service, sit-down experience. Our Signature Brands offer a range of bespoke offerings. Our Supply
Chain refers to our Manufacturing, Logistics and Retail operations, which offer our franchise partners efficient
supply, price certainty, product innovation and margin management. Our Retail operations sell products
to major national retailers.
Our restaurant network
We have 3 008 restaurants across 20 countries.
Restaurants per region
SA SADC AME UK
2 666 227 57 58
Operating context1
South Africa's economic growth increased to 0.8% in Q2 2025, a rebound from 0.1% growth in Q1. Other positive
developments include the cessation of load shedding, improvements to the national logistics network and relative
political stability. In addition, traffic has increased, supported by return-to-office mandates,
boosting restaurant sales.
Consumer spending remains constrained due to high unemployment, household indebtedness and elevated
inflation in recent years. Competition for consumer spending is intense, especially in the QSR category,
as brands invest in campaigns to promote core categories at competitive prices. Consumers seek value in an
increasingly competitive environment, including competition from supermarket retailers' rapid delivery offerings.
1 Trading Economics: https://tradingeconomics.com/south-africa/gdp-growth
Financial performance
Our financial performance demonstrated strong momentum, with positive results across key financial metrics.
Revenue increased by 5.6% to R4.2 billion (2024: R4.0 billion), and operating profit increased by 5.8% to
R393 million (2024: R371 million). The Group's operating profit margin was 9.3% (2024: 9.2%). Headline earnings per
share (HEPS) increased by 8.0% to 236 cents (2024: 218 cents), while basic earnings per share (BEPS) increased
by 6.8% to 236 cents (2024: 221 cents).
Sustained consumer preference for our South African Leading Brands portfolio, particularly for the QSR brands,
led to robust revenue growth, which in turn lifted the performance of our Manufacturing and Logistics divisions.
In addition, we experienced strong growth in our brand footprint.
We continued to pursue operational efficiencies and cost containment initiatives. This included the opening of our
cold storage facility in June 2025, which was completed on time and within budget. The new facility will increase
capacity, reduce transport costs and result in savings from more energy-efficient refrigeration technologies.
Six Six %
months months change
ended ended (2024
SALIENT August August versus
FEATURES Unit 2025 2024 2025)
Revenue R'm 4 240 4 017 5.6
Operating profit R'm 393 371 5.8
Operating profit
margin % 9.3 9.2
Basic earnings
per share (BEPS) Cents 236 221 6.8
Headline
earnings per
share (HEPS) Cents 236 218 8.0
STATEMENT OF
CASH FLOWS
Cash generated
by operations R'm 472 498 (5.3)
Net cash outflow
utilised in
investing
activities R'm (142) (73) (94)
Net cash outflow
from financing
activities R'm (65) (140) 54
Cash realisation
rate* % 96 106
STATEMENT OF
FINANCIAL
POSITION
Cash and cash
equivalents R'm 331 324 2.0
Net debt** R'm 1 104 1 134 2.6
Net debt/equity
(gearing) Times 0.84 1.03
Total equity R'm 1 317 1 099 20
Return on equity
(ROE)*** % 41 44
Return on capital
employed
(ROCE)**** % 34 32
* Cash generated by operations as a percentage of EBITDA.
** Total interest-bearing borrowings, including lease liabilities less cash.
*** Headline earnings as a percentage of average total equity.
**** Operating profit divided by capital employed (which is calculated as the sum of total equity and interest-bearing debt
net lease liabilities).
Capital allocation
Gearing
The Group's total borrowings position at 31 August 2025 was R1.1 billion (2024: R1.2 billion). During the review
period, we repaid R62 million of borrowings and raised a similar amount for the development of the cold storage
facility. The Group's finance costs on borrowings decreased by 23% compared to the same period in 2024, due to a
reduction in debt and interest rate cuts (50 basis points).
Capital expenditure
We invested R140 million (2024: R91 million) in capital expenditure, allocating capital in line with the Group's strategy.
Dividend
The Board declared an interim dividend of 162 cents per share (2024: 150 cents per share). The dividend will be paid
from profits for the review period, amounting to a total of R162 million. In terms of dividends tax legislation, the
following additional information is disclosed:
Event dates
Declaration date Wednesday, 22 October 2025
Last day to trade"cum dividend" Monday, 15 December 2025
Shares commence trading "ex-dividend" Wednesday, 17 December 2025
Record date Friday, 19 December 2025
Payment of dividend Monday, 22 December 2025
Those shareholders of the Group who are recorded in the Company's register as at the record date will be entitled to
the dividend.
In terms of dividends tax legislation, please note the following:
The local dividend tax rate is 20%.
The net local dividend amount is 129.60 cents per share for shareholders liable to pay the dividends tax and
162 cents per share for shareholders exempt from paying the dividends tax.
The issued share capital of Famous Brands is 100 202 284 ordinary shares.
Famous Brands' tax reference number is 9208085846.
Operational review
Brands
Revenue for SA increased by 6.3% to R599 million (2024: R563 million).
Operating profit declined by 0.4% to R231 million (2024: R232 million).
System-wide sales across our SA brand portfolio improved by 5.5% and like-for-like sales increased by 2.4%.
Leading Brands - SA
Leading Brands' system-wide sales increased by 6.0%, and like-for-like sales increased by 2.6%. Restaurant sales were
boosted by an uptick in local tourism and increased traffic resulting from return-to-office mandates. Our QSR brands
performed strongly due to their competitive value offerings, successful promotions and prudent cost management.
Leading Brands experienced strong growth in its brand footprint, with 27.8% of new restaurants allocated to
existing franchise partners. We expanded our footprint of smaller restaurant formats and drive-thrus to meet
consumer demand for convenience. The pleasing revamp activity demonstrates franchise partners' trust in our brands
and willingness to reinvest in their businesses.
Signature Brands - SA
The Signature Brands portfolio delivered softer results than anticipated, driven by lower consumer demand for
premium dining out. Like-for-like sales and system-wide sales declined by 0.6% and 0.4%, respectively. Operating
loss margin was (7.0%) (2024: (6.7%)).
SADC
The region experienced steady growth, with revenue increasing by 2.7% to R224 million (2024: R218 million).
Operating profit declined by 11.8% to R24 million (2024: R28 million). Operating profit margin was 10.9%
(2024: 12.7%). Botswana's system-wide restaurant sales decreased by 2.3%, and like-for-like sales declined by 5.5%
compared to the prior period. Zambia's system-wide sales were 4.8% higher than the prior period, while like-for-like
sales declined by 3.2%.
AME (outside of SADC)
Revenue declined by 5.4% to R33 million (2024: R35 million). Several markets are experiencing tough trading
conditions and high inflation. Our brand presence remains sub-scale in the region. Operating loss was
(R19 million) (2024: (R22 million)), while the operating loss margin was (57.2%) (2024: (63.4%)).
UK
The UK restaurant industry has been battling with cost pressures, cautious consumers and economic uncertainty, resulting
in constrained sales. Revenue declined by 5.7% to R65 million (2024: R69 million). Operating profit decreased to
R1 million (2024: R3 million). Operating profit margin was 2.2% (2024: 4.6%).
Looking forward
We remain cautiously optimistic regarding the remainder of the 2026 financial year, with modest but positive growth
predicted for South Africa, underpinned by recovering domestic demand, lower inflation and interest rates and a
more stable energy supply.
Competitive intensity, especially from value-driven offerings, is expected to increase, requiring strategic
flexibility to maintain market share and profitability. This involves agility with menu options, promotions and
loyalty programmes. We will leverage our new consumer engagement platform to provide compelling, personalised
offers to our customer base. The restaurant pipeline is healthy with demand for Leading Brands and Signature
Brands. The principle of two separate portfolios is working well, with resources being dedicated appropriately to the
relevant growth opportunities.
Expansion in the SADC region will follow a targeted focus on specific markets. We will remain cautious in the AME
markets. We are committed to reducing the drag on our profitability from the AME and Signature Brands portfolios.
The Manufacturing division is deploying manufacturing technology, processes and resource planning to increase
capacity, improve production yields and reduce waste. We will also grow revenue by increasing the range of products
offered to franchise partners and the retail market.
Our Logistics division will improve its efficiencies through fleet mix optimisation, route planning, bringing retail
frozen distribution in-house and taking on the distribution of the Coca-Cola beverage basket in eight provinces.
Our warehouse management system will support better planning and decision-making.
There are strong indications that Retail performance will improve in the remainder of the 2026 financial year. We
are executing a retail marketing strategy to secure new product listings and promote our ranges to consumers.
We have confidence in our ability to innovate and grow, supported by dedicated franchise partners. Improved
profitability will be supported by our ongoing efforts to contain costs and improve efficiency. We are committed to
improving shareholder returns, reducing our legacy debt and supporting the sustainability of our franchise partners.
On behalf of the Board
CH Boulle DP Hele
Chairman Chief Executive Officer
Midrand
22 October 2025
Supply chain
MANUFACTURING
Manufacturing revenue increased by 10.4% to R1.8 billion (2024: R1.6 billion), mainly driven by price inflation and a positive
shift in product mix. The division experienced strong volume growth for core lines, including cheese, sauces and meat products.
Operating profit increased by 23.6% to R185 million (2024: R150 million) due to improved production yields, reduced input costs
for key ingredients and cost savings realised from the division's efficiency drive. Above-inflation expenses include municipal
and electricity price hikes, as well as increased repairs and maintenance. Beef prices in the second quarter were challenging,
resulting in R30 million margin erosion as pricing was absorbed during the market volatility. Operating profit margin was 10.4%
(2024: 9.3%).
LOGISTICS
Logistics revenue increased by 7.4% to R2.7 billion (2024: R2.5 billion) as the division's case volumes grew by 1.9% and
price inflation increased by 5.1%. Operating profit declined by 14.8% to R29 million (2024: R34 million), due to inflationary
cost pressures. Operating profit margin decreased to 1.1% (2024: 1.4%).
RETAIL
Retail revenue remained flat at R171 million (2024: R171 million), primarily due to lower sales volumes of frozen potato chips
resulting from sustained competition. Volumes for coffee products at restaurants and retail also remain depressed due to higher
global coffee prices. The division had an operating loss of (R12 million) (2024: (R2.6 million)). We launched three new
products (2024: one).
A live webcast of the Group's interim results presentation will be held on Wednesday, 22 October 2025 at 10h30 (SAST)
To pre-register, link to: https://www.corpcam.com/FamousBrands22102025
Full announcement and forward-looking statements disclaimer
The contents of this short form announcement are the responsibility of the Board and have not been reviewed or reported
on by the Group's external auditors. Shareholders are advised that this short form announcement represents a summary of the
information contained in the full announcement, published on https://senspdf.jse.co.za/documents/2025/jse/isse/fbr/HY25.pdf
and on Famous Brands' website at www.famousbrands.co.za on 22 October 2025 and does not contain full or complete details
of the financial results. Any investment decisions by investors and/or shareholders should be based on consideration of the
full announcement as a whole and shareholders are encouraged to review the full announcement. The full announcement is also
available for inspection at the registered office of the Company and at the offices of Famous Brands' sponsor,
The Standard Bank of South Africa Limited. Inspection of the full announcement is available to investors and/or shareholders
at no charge during normal business hours.
Important definitions
System-wide sales refer to total sales reported by all restaurants across the network, including those opened during the year.
Like-for-like sales refer to sales reported by all restaurants across the network, excluding restaurants opened or closed during
the year. Leading Brands' sales refer to the sales of Leading Brands in SA. Signature Brands' sales refer to franchises and
Company-owned store sales in SA.
Directors
Chris Boulle (Independent Chairman), Nik Halamandaris, Darren Hele (CEO)*, Alex Maditse, Busisiwe Mathe, Thabo Mosololi,
William Mzimba, Fagmeedah Petersen-Cook, Nelisiwe Shiluvana (Group Financial Director)*.
* Executive
Group Company Secretary
Celeste Appollis
Registered office and contact information
478 James Crescent, Halfway House, Midrand, 1685 | PO Box 2884, Halfway House, 1685
Telephone: +27 11 315 3000 | Email: investorrelations@famousbrands.co.za | Website address: www.famousbrands.co.za
Transfer Secretaries
Computershare Investor Services (Pty) Ltd
Registration number: 2004/003647/07
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196 Private Bag X9000, Saxonwold, 2132
Sponsor
The Standard Bank of South Africa Limited
Registration number: 1969/017128/06
30 Baker Street, Rosebank, 2196
Auditors
KPMG
Registration number: 1999/012876/07
85 Empire Rd, Parktown, Johannesburg, 2193
www.famousbrands.co.za
Date: 22-10-2025 08:00:00
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