Famous Brands, the owner of popular restaurant franchises Debonairs Pizza, Steers and Wimpy, has reported a rise in full-year earnings per share despite constrained consumer budgets and rising competition.
The group announced on Monday that its headline earnings per share (HEPS) for the year ended February rose 11.9% to 520c.
The group declared a final dividend of 195c per share, bringing the total dividend for the year to 345c. Revenue increased 3.2% to R8.3bn with operating profit up 12.6%.
The retail division’s revenue decreased 6.6%, affected by lower sales volumes of potato chips, as a major competitor re-entered the market after a stock shortage in 2024, it said.
Leading Brands’ like-for-like sales increased 1.4%. The Signature Brands portfolio recorded a 0.5% decline in like-for-like sales, which were dampened by lower consumer demand for dining out and restaurant closures.
Sales in the Sadc region declined 0.3%, but revenue increased 10%. The AME region — Ivory Coast, Egypt, Ethiopia, Kenya, Kuwait, Nigeria, Mauritius and the UAE — recorded a revenue increase of 27.7%.
We are focused on securing new product listings, winning market share and developing our product innovation capabilities.”
Famous Brands said the UK continued to experience challenges, marked by significant economic uncertainties. Revenue for the region declined 18.5%.
The outlook for the 2026 financial year remained “uncertain” as geopolitical tension and trade wars persisted, Famous Brands warned.
“Our strategy remains appropriate and resilient despite the difficult trading conditions. As our revenue comes under pressure, we must look to become more efficient. We remain confident in its potential to expand our brands into at-home consumption,” it said.
“We are focused on securing new product listings, winning market share and developing our product innovation capabilities.”
According to Luresha Chetty from Ashburton Investments, Famous Brands boosted its profits by adapting to tough consumer conditions and benefiting from fewer power cuts.
The company opened 122 new restaurants in FY25, including more drive-thrus, which are popular with budget-conscious consumers who prefer avoiding delivery fees.
She said while sit-down restaurants under the Signature Brands struggled, the quick service chains like Steers and Debonairs performed relatively well.
“The outlook suggests some optimism in navigating the difficult trading environment — by improving value and menu offerings and growing the leading brands footprint.
“Below the topline, management will continue to improve manufacturing technology to improve efficiencies and reduce costs,” Chetty said.
Update: May 19 2025
This story has been updated with new information.
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