Famous Brands reports 15% increase in full-year revenue

Famous Brands, a leading name in the South African market, has shown resilience in the face of a tough economic climate. Despite challenges such as increased load shedding and a shrinking share of consumers' wallets, the company has reported an impressive 15% increase in full-year revenue. In a recent interview with CNBC Africa, the Chief Executive Officer of Famous Brands, Darren Hele, discussed the company's performance and future outlook. Hele expressed satisfaction with the overall performance, citing a 37% growth in operating profit and an increase in headline earnings per share in the last half-year results. He highlighted the impact of the delivery component on revenue, noting its significant contribution to the business amidst the COVID-19 pandemic. Looking ahead, Hele emphasized the company's growth strategy, particularly in the drive-thru segment, as well as opportunities in Africa and the Middle East. Hele also touched on the challenges and opportunities in expanding on the continent, acknowledging that it is a long-term strategy that requires careful planning and investment. Despite the volatility in the market and challenges such as electricity shortages and infrastructure failures, Hele remains optimistic about the company's position in the market and its investment potential. He emphasized the importance of out-of-home consumption and the company's strong position in catering to that demand. When discussing the performance of Famous Brands' leading brands, Hele pointed out the strong performance of Casual Dining, with brands like Wimpy and Mug and Bean showing promising results. However, he noted that the QSR (Quick Service Restaurant) segment remains the key growth driver for the company. Hele also addressed the company's diversified business model, which includes manufacturing and logistics components, emphasizing their relationship to the core food business. In conclusion, Hele expressed confidence in the company's resilience and growth prospects, despite the challenging macroeconomic environment. He acknowledged the importance of adapting to market conditions and remaining agile in the face of uncertainty. As Famous Brands continues to navigate the complexities of the market, investors and consumers alike will be watching closely to see how the company evolves and continues to deliver value in the years to come.