Famous Brands, which owns restaurants such as Debonairs, Milky Way, Mugg & Bean and Wimpy, posted a 19% revenue increase to R3.6-billion in the six months to August.
The company, which released its interim results on Wednesday, said its operating profit in the period jumped 77% to R393-million. The group’s total borrowings position at the end of the six months under review was R1-billion, down from R1.3-billion in the comparative period.
“In August 2022, Famous Brands renegotiated its borrowings with its primary lender to a more appropriate debt finance structure in line with our current requirements and strategy,” the company said.
“The group’s gearing improved after payment of R150-million during the period by 57% from 3.01 times to 1.3 times. Furthermore, its leverage improved by 55% from 4.40 times to 1.98 times.”
The company also noted that consumers faced several macro-economic issues, including a sharp rise in the cost of living in the six months under review.
“Rising food and fuel costs have forced many restaurant brands to raise their menu prices substantially in the first half of 2022, with more increases anticipated for the remainder of the year.
“Competitors in the restaurant industry are continuously innovating their consumer value proposition through bundle deals, competitions, loyalty programmes and use marketing campaigns to reinforce key quality perceptions.”
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