Johannesburg - Restaurant franchise group Spur Corporation reported a sales increase of 12.6 percent to R3.5 billion in the six months to December.
The group, which has operations in Australia, the UK, Zambia, Mauritius and Namibia, said South African sales were slightly higher at 13.2 percent. But it was closing some of its underperforming restaurants in the UK as international revenue declined by 38.6 percent.
Spur is home to other well-known restaurant outlets like Panarottis Pizza Pasta.
Chief executive Pierre van Tonder said the company wanted to expand in the future because 2016 would present them with other challenges.
“Consumer spending will come under further pressure as South Africans face higher inflation and rising debt servicing costs,” he said. “We will remain competitive in this environment through aggressive, value-focused marketing.”
In the trading period, Panarottis posted a 21.6 percent increase in sales, John Dory is up 20.2 percent and Spur Steak Ranches rose 6.8 percent.
International restaurant sales increased by 8.3 percent in rand terms. The Hussar Grill, which targets higher income customers, increased its restaurant sales by a whopping 36.9 percent.
Spur operates in a competitive local market and faces strong competition from other household restaurants like Steers, Debonairs, KFC, McDonald’s and Nando’s.
The group said it planned to open 31 restaurants in the second half of the financial year.
Headline earnings increased by 79.6 percent to R97.9 million with headline earnings per share 66.7 percent higher at 101.96 cents.
The interim dividend was increased by 8.1 percent to 67c per share. Spur shares were down 0.34 percent yesterday on the JSE to close at R29.29.
BUSINESS REPORT