Wimpy and Steers owner Famous Brands sees opportunities to capitalise on the boycott of Western brands in the Middle East and grow market share in these markets, it said on Monday.
Branded food services franchisor Famous Brands has reported an 8% increase in revenue to R8-billion for the financial year ended February 29, although a 6% decrease in profit to R812-million and a 1.5% profit margin contraction from 11.6% to 10.1% dampened results. Despite the group’s carefully managed cost base, the operating profit margins were negatively impacted on by input cost pressures and increases in overheads, namely electricity, water, diesel, repairs, maintenance and employee costs.
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Steers and Wimpy-owner Famous Brands hiked its full-year dividend more than 80%, reporting earnings rose more than a third as it benefitted from the lifting of Covid-19 restrictions that saw South Africans flocking back to restaurants and an increase in tourism.