Famous Brands (FBR) H2 2025 earnings summary

Executive summary

• Achieved resilient results in a tough trading environment, with strong brand performance and continued consumer preference despite macroeconomic headwinds.

• Revenue grew 3.2% to R8.28 billion for the year ended 28 February 2025, with operating profit up 12.6% to R914 million.

• Celebrated 30 years of listing, highlighting a stable business model and robust franchise network.

• Restaurant network expanded to 2,979 outlets across 20 countries, with 153 new openings and 289 revamps.

• Achieved Level 1 B-BBEE contributor status and strengthened digital and delivery capabilities.

Financial highlights

• Revenue increased by 3.2% year-over-year to R8.28 billion; operating profit rose 12.6% to R914 million.

• Operating profit margin improved to 11.0% from 10.1% in 2024.

• HEPS grew 11.9% to 520 cents per share; dividend payout increased to 345 cents per share.

• Net debt to EBITDA reduced to 0.89x; cash and cash equivalents increased to R441 million.

• SADC revenue up 10% to R451 million; AME up 28% to R71 million; UK revenue down 18% to R132 million.

Outlook and guidance

• Optimistic about store opening pipeline, expecting to surpass current year’s net growth.

• Lower food inflation and stable menu pricing expected to benefit consumers, with possible interest rate cuts.

• Continued focus on extracting value from supply chain investments and enhancing consumer-facing technology.

• Healthy pipeline of new store openings and strong franchise partner interest.

• Cautious approach to expansion in challenging markets, with focus on sustainable growth.