JOHANNESBURG – Grand Parade Investments (GPI) said on Monday it had managed to weather tough trading conditions in the six months to December 31, as evidenced by good growth in revenue of 28 percent and an increase in headline earnings from continuing operations.
GPI -- which last month said it was exiting poor performing assets Dunkin Donuts and Baskin Robbins as part of a value-based strategy -- said it remained focused on a tactical plan to improve operations which would continue to grow earnings over the next 6 months.
Notwithstanding the tough environment, the group managed to increase its interim headline earnings to R16 million from R13.7 million in the prior period.
The increase was largely driven by an increase in contributions from gaming and leisure assets.
It said Burger King South Africa had managed to generate impressive top-line growth with a significant increase in revenue. It slowed down restaurant growth to focus on improving the profitability of its poor performing restaurants and marginally grew its net restaurant count by three restaurants, opening four new ones and closing one.
"The group has recognised that whilst Burger King is still in its growth phase, the group will continue to adopt a conservative approach on its gearing to meet its master franchise obligations," it said.
African News Agency (ANA)