Famous Brands (FBR) 1H24 – Results Snapshot

Diluted HEPS 199.0 cps (1H23: 214 cps).
Revenue growth of +10.1% y-y (1H23: +19.2% y-y).
GPM down -200 bps to 42.7% (1H23: 44.7%).
Operating margin down from 11.0% to 9.4%.
Expense to sales ratio down to 33.6% (1H23: 35.6%).
Dividend of 138 cps (1H23: 130 cps).
Leading brands delivered strong results due to value offerings as well as menu price increases. The ability to trade during load shedding contributed to results.
Overall mixed results within the Signature Brands portfolio as a result of low disposable income among consumers and evening trade not yet recovered to pre-pandemic levels.
In South Africa, system-wide sales across Leading and Signature brands increased 7.8% y-y with like-for-like sales up 6.1%. The AME region delivered 15.3% growth y-y in system-wide sales with high inflation in some African markets.
While trading conditions remain difficult in the UK, the operating margin improved from -28.1% to 12.0%.