Famous Brands FY revenues up 15% to £310m
Through Wimpy UK, the company reported revenues of R142m (£5.9m) and operating profit increased 12% to R19m (£0.7m)
South African restaurant company Famous Brands, which operates 65 restaurants in the UK, has reported revenues of R7.4bn (£310m) in FY23, a 15% increase compared to last year.
The group has attributed the revenue increase to improved trading conditions across most markets thanks to the lifting of Covid restrictions.
Operating profit for the group also increased by 37% to R861m (£36m) over the year.
Brands’ revenue was up 21% to R1.1bn (£46m) as restaurant turnovers improved, resulting in higher franchise fees.
Leading Brands’ system-wide sales improved by 14%, and like-for-like sales increased by 12%. The group attributed this growth to its portfolio of brands, including Wimpy UK, continued investment in technology and a return to sit-down casual dining.
In the UK, Famous Brands reported revenues of R142m (£5.9m) and operating profit increased 12% to R19m (£0.7m). The company has said that 2023 has been a challenging year for Wimpy UK with the general decline in spending dictated by a drop-off in delivery channel sales. However, in-store sales did not decline.
The retail division grew revenue by 23% to R273m (£11m) but operating profit decreased by by 91% from R2m (£83k) in 2022 due to coffee product write-offs and a global shortage of coffee crops impacting profitability.
However, during the year the retail division launched 13 new products, including two new types of Wimpy frozen chips and hash browns, new variants of sauces and meat products. The group said that the Wimpy offering was particularly well-received by consumers.
In the official announcement, the chairman and chief executive officer said: “In our Brands division, we will continue to grow our footprint through franchising, master licences, strategic partnerships and Company-owned stores.
“We are working on exciting partnerships with retail groups and prominent loyalty programme providers. Our diverse menu options, strong brands and resilient franchise partners will allow us to grow, despite continuing economic headwinds.”
