Famous Brands (FBR) H1 2025 earnings summary

Executive summary

• Revenue rose 2% year-over-year to R4,017 million for the six months ended 31 August 2024, with operating profit flat at R371 million, reflecting margin pressure from lower volumes and overhead costs.

• Headline earnings per share increased 9.5% to 218 cents, supported by cost discipline and efficiency initiatives.

• Interim dividend declared at 150 cents per share, up 9% from the prior year, reflecting stable cash flows and prudent capital management.

• Achieved Level 1 B-BBEE contributor status and completed the acquisition of the remaining 38% shareholding in Famous Brands Coffee Company.

• Cautious optimism for H2 2024, with a focus on supporting franchise partners, investing in technology, and expanding drive-through and delivery hub presence.

Financial highlights

• Revenue: R4,017 million (up 2% year-over-year).

• Operating profit: R371 million (flat year-over-year); margin at 9.2% (down from 9.4%).

• Headline earnings per share: 218 cents (up 9.5% year-over-year).

• Interim dividend: 150 cents per share (up from 138 cents).

• Cash generated from operations: R498 million (down 7% year-over-year), with liquidity supported by R213 million in undrawn credit.

Outlook and guidance

• Cautiously optimistic for H2, expecting easing menu inflation, improved consumer disposable income, and 89 new store openings, mostly in South Africa.

• Focus on rebuilding margins, increasing market share, and supporting franchise partners.

• Continued investment in technology, operational efficiency, and selective capital expenditure.