Famous Brands has struggled to digest its UK deal. As expected, an R874m write-down of Gourmet Burger Kitchen has knocked the restaurant franchiser into an interim loss.
But Gourmet Burger Kitchen is not the only acquisition that’s run into trouble. Coega Concentrate, a tomato paste factory Famous Brands bought in 2016, contributed a R17.8m operating loss during the period. This was due to decreased volumes as a results of drought. Given the performance of Coega, Famous Brands says it will cease operations until further notice but a prospective buyer has been identified and negotiations for the sale of the business are progressing.
CEO Darren Hele joins Business Day TV to discuss some of the detail behind the numbers.
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