File Image: IOL
File Image: IOL
JOHANNESBURG - JSE-listed franchisor Gold Brands Investments said yesterday that although it experienced losses during the period to the end of February, it also managed to add value to the company by strengthening its portfolio and establishing partnerships with well-known local and international brands.

The group said that acquisitions such as well-known American Ed’s Diner restaurants would add sales to its distribution centre.

It said its losses for the period amounted to R16million, from R48.5m last year.

The group said revenue dipped to R40.2m, down from R142.8m, while headline loss a share was 12.27cents a share, compared with last year's headline loss of 40.89c a share.

The group did not declare a dividend during the period.

“Trading conditions remain tight in South Africa, due to the high cost of living as well as ever increasing transport costs,” Gold Brands said. “We are, however, optimistic in attracting investors and partnerships with the group's brands.”

The group announced in November last year that it had acquired 50percent of the rights, trademarks and intellectual property of Ed’s Diner from its owner Vasilis Lazaridis.

It said the purchase would allow it to own the exclusive rights to roll out and franchise the Ed’s Diner concept throughout the country.

Gold Brands said it was planning to roll out 10 of Ed’s Diner stores in South Africa in the next five years.

Gold Brands’ food chains include Chesa Nyama, 1+1 Pizza, Opa!Pita Land, Chicken Wild Wings and Black Steer.

The group listed on the JSE in 2016, and the company said it had been actively seeking to acquire value added brands through partnerships that would increase revenues in its food services division.

Flagship

Yesterday, Gold Brands said it remained confident about the prospects of its flagship Chesa Nyama, despite the brand going through a lean spell in the past two years.

“The founders have created a successful brand serving more than 2million customers a month,” the group said.

“Although our number of stores decreased to 141 outlets in financial year 2018, our system-wide sales for the year was R294.8m, with an increase in average store sales of 5.2percent and an increase in average spend per transaction at store level of 6.77percent,” the group said.

The group also said more focus had been placed on improving the 1+1 Pizza brand, through menu improvement and the brand had already seen three more stores opening in 2018, with three others planned in the near future.

During the period the group said management assessed the recoverability of debtors and have impaired debtors by R3.9m and recognised a further impairment provision of debtors at year end of R3.8m.

The group said it would continue to serve international unique tastes and value-for-money meals. “Our focus is on hands-on operators and partners,” the group said.

Gold Brands share remained flat on the JSE yesterday to close at R0.52.

- BUSINESS REPORT