Johannesburg - Famous Brands, the South African owner of fast-food chains including Debonairs Pizza and Steers burgers, said first-half profit rose after efficiency improvements helped offset sluggish consumer spending.
Net income gained 19 percent to 210.5 million rand in the six months through August, compared with 177.5 million last year, the Johannesburg-based company said today in a statement.
Revenue increased 14 percent, while the operator of almost 2,500 restaurants raised the half-year dividend by 19 percent to 155 cents per share.
Famous Brands has been opening new outlets and expanding elsewhere in Africa to help counter slowing economic growth in its domestic market, where consumer spending has been stifled by strikes, rising inflation and unemployment of more than 25 percent.
The company has focused on cost cuts and boosting the performance of the supply chain to maintain growth.
“Despite constrained consumer discretionary income, management has high expectations for the forthcoming peak trading period,” Famous Brands said.
“Aggressive promotional campaigns for the mainstream brands, supported by strong value and innovation propositions, will be implemented nationally and will peak over the November-December summer holidays.”
Famous Brands shares have gained 5.3 percent this year, compared with a 3.5 percent increase on the FTSE/JSE Africa All Share Index. - Bloomberg News