“The operating margin attained a record high of 20 per cent, up from 18.5 per cent in the prior year, and one year ahead of plan,” Famous Brands said in a statement.
“This improvement is a remarkable achievement given higher input costs, and is a reflection of increased system-wide sales, intensive cost containment and improved efficiencies across the business.”
Revenue for the company was up 12 per cent to 2.8 billion rand from 2.5 billion rand in the previous comparative period.
Profit before tax was also up 23 per cent to 567 million rand for the period under review from 461.8 million rand.
[DATA FBR:Famous Brands] Famous Brands is a South African quick service restaurant and casual dining franchisor, with brands such as Wimpy, Mugg and Bean, Wakaberry, Steers and Nigeria’s Mr. Biggs.
Basic headline earnings per share were up 20 per cents to 406 cents from 338 cents, and the dividend following a similar trend by growing 20 per cent to 300 cents per share 250 cents in the previous comparative period.
Headline earnings per share grew 20 per cent to 406 cents per share from 339 cents in 2013. Market capitalisation also exceeded a milestone at 10 billion rand.
The company’s Franchising division, which comprises of South Africa, the rest of Africa and the United Kingdom, Middle East, India and Mauritius, saw system-wide sales across the franchise network grow 13 per cent. Like on like sales also increased 6.7 per cent.
Across the brand portfolio, the group opened 165 new restaurants and revamped 185.
Revenue for the South Africa division increased 13 per cent to 538 million rand from 477 million rand in 2013.
The Rest of Africa division saw an increase in system-wide sales of 32.5 per cent, while like-on-like sales grew 17.9 per cent. The Rest of Africa region now comprises 8.5 per cent of total system-wide sales.
In October last year, Famous Brands acquired a 49 per cent stake in Nigeria’s UAC Restaurants Limited, which houses the flagship Mr Bigg’s brand.
In its international operations, Famous Brands’ UK operation recorded one of its best-ever results. Revenue in Sterling decreased six per cent, but in rand terms improved 11 per cent to 92 million rand for the period under review from 83 million rand in 2013.
The company’s logistics division also delivered strong growth, and exceeded the two billion rand mark for the first time, and an improvement of 12 per cent over the prior year.
“It is satisfying to report on a year which featured not only strong results but also substantial progress made on the programmes which will achieve this goal and drive the Group’s future growth trajectory,” the company explained.