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FAMOUS BRANDS LIMITED - Unaudited condensed consolidated interim financial results for the six months ended 31 August 2015

Release Date: 22/10/2015 07:05
Code(s): FBR     PDF:  
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Unaudited condensed consolidated interim financial results for the six months ended 31 August 2015

Famous Brands Limited 

Incorporated in the Republic of South Africa

Registration number: 1969/004875/06

JSE share code: FBR

ISIN code: ZAE000053328



Unaudited condensed consolidated interim financial results 

for the six months ended 31 August 2015



Financial highlights



- Revenue up to R1.998 billion 

  +27%



- Operating profit up to R347 million 

  +14%



- Headline earnings per share up to 241 cents              

  +14%



- Dividends up to 190 cents per share 

  + 23%





GROUP PERFORMANCE OVERVIEW

The reporting period presented a number of challenges - both external and internal - for Famous Brands. Generally

subdued economic conditions and constrained consumer spend were experienced in most of the Group ’s trading markets. In

addition the business undertook a range of ambitious projects to integrate new high-volume low-margin business into its

Manufacturing and Logistics operations, which proved more onerous than anticipated.

 

Notwithstanding these challenges, the Group reported a strong increase in revenue. However, this pleasing top-line

turnover growth failed to translate into corresponding growth in operating profit, largely due to the sub-optimal

integration of the new Supply Chain projects into the business. In addition, the final phase of the Group ’s Fit-4-Purpose

initiative, a programme aimed at bringing the business closer to its customers (franchisees) and consumers, incurred further

costs. This investment has now been concluded and the resulting structure will play a significant role in building

capacity and capability for the Group ’s ongoing growth.



FINANCIAL RESULTS 

Group revenue grew by 27% to R1.998 billion (2014: R1.572 billion), while operating profit increased 14% to R347

million (2014: R303 million). The operating margin declined to 17.4% (2014: 19.3%) primarily as a function of margin erosion

in the Logistics business. 



Basic earnings per share (EPS) increased by 14% to 242 cents per share, while headline earnings per share (HEPS) rose

14% to 241 cents. Diluted EPS improved 13% to 240 cents per share, while diluted HEPS grew by 14% to 240 cents per

share.



Cash generated by operations before changes in working capital improved by 21% to R385 million (2014: R318 million).

Working capital increases totalled R108 million, resulting in a net cash flow from operating activities of R149 million

(2014: R162 million).



Net cash outflow from investing activities of R117 million (2014: R60 million) was incurred primarily on acquiring

controlling stakes in Retail Group (Pty) Ltd and Cater Chain Food Services (Cater Chain).



No borrowings were raised during the period. The Group ’s net borrowings of R45 million (2014: R25 million) represent a

low net debt equity of 3% (2014: 2%).

 

OPERATIONAL REVIEWS

Franchising 

The Group ’s Franchise division comprises three regions, namely: South Africa, Rest of Africa and International (United

Kingdom and the Middle East). As at 31 August 2015 the Group ’s global footprint comprised 2 565 restaurants. 



Combined revenue recorded by this division increased 7% to R321 million (2014: R299 million), while operating profit

improved 4% to R181 million. System-wide sales across the total franchise network grew 10.3%, while like-on-like sales

increased 4.9%. Significantly, the Group ’s mainstream brands grew system-wide sales by an average 10% and like-on-like

sales by 5.2%. The Group ’s emerging brands also delivered a satisfying performance.



These solid results are testament to the Group ’s deliberate strategy of building a portfolio of brands which appeal to

consumers across a wide range of dining occasions and income groups. 



The Group opened 75 restaurants across its brand portfolio during the period. A further 139 new restaurants are

scheduled for opening during the remainder of the current fiscal year. 



South Africa

Despite sustained economic and household financial pressure, the food services industry registered above-inflation

value growth during the reporting period, reflecting that eating out has become part of the fabric of the social lives of

the majority of middle-income and high-income consumers in South Africa.

 

In the six months under review, good growth was reported across almost all of the Group ’s brands. System-wide sales,

including new restaurants, grew 9.1% and same store sales increased 5.2%.

 

Sixty four (2014: 96) new restaurants were opened across the South African network during the period. The Group plans

to open a further 116 restaurants in its home market in the forthcoming six months.

 

Mugg & Bean delivered a standout performance during the period, recording robust double digit growth. This brand

continues to demonstrate extreme resilience as well as strong long-term growth potential, not only in South Africa but across

the Rest of Africa as well. Management is confident that Mugg & Bean, together with the Group ’s other bouquet of niche

coffee-related brands, will withstand competition from new global entrants. 



Once again, Debonairs Pizza turned in a stellar performance, reporting both organic and numeric growth. As predicted

by management, the much-publicised arrival of new participants in the pizza category has done nothing to slow down the

performance of this brand, and in contrast, has served to grow the category, a development which Debonairs Pizza continues

to benefit from. 



A range of revamps were undertaken across the Group’s brand portfolio, including significant work on the Steers

brand’s creative platform, menu and promotional offering; in the period since this intervention was implemented, strong growth

has been reported.



The Group’s stated strategy is to ensure its brands are represented at all major consumer hubs across the country and

are therefore well positioned to capture any available spend. In this regard, new tenders were awarded to Steers and

Debonairs Pizza at OR Tambo Airport, while Debonairs Pizza was awarded a site at Cape Town International Airport. 



Rest of Africa

The Group trades in 16 countries in this region. System-wide sales reported by the division grew by 22.6% in line with

management expectations. This territory now contributes 9.5% (2014: 8.6%) of total franchise system-wide sales.



Eleven restaurants were opened during the period, and a further 21 are planned for the balance of the year.



Sustained growth of the pizza category in the Rest of Africa region and strong demand for Debonairs Pizza’s offering

continues to drive expansion of this brand, which recorded double digit system-wide sales. The Debonairs Pizza-Shoprite

Master Licence arrangement in Angola has bedded down well and will gain traction in the second half of the year with the

opening of a further five restaurants.

 

Steers also reported a strong performance in the region, delivering a 20% increase in system-wide sales. New

restaurants were opened in Zimbabwe, Malawi and Botswana.



INTERNATIONAL

United Kingdom (UK)

The Group’s UK operation delivered satisfactory results. While revenue in Sterling declined, revenue in Rand terms

remained in line with the prior comparative period at R53 million. Operating profit grew by 12% to R9.8 million 

(2014: R8.8 million) and the operating profit margin rose to 18.4% (2014: 16.4%). 



During the period the UK management team was restructured to position the business for future growth. Two new

restaurants, one Wimpy and one Steers, will be opened in the balance of the current fiscal year.



The Steers brand continued to gain momentum during the six months under review. The Rugby World Cup will provide a

platform to showcase the brand, which should have a positive impact on performance.



Middle East

While this region offers good growth potential for the Group, political instability has frustrated interest from

prospective franchisees. In this context, Debonairs Pizza and Steers reported solid results, but will benefit from increasing

their trading footprint in due course. 



tashas’ Dubai restaurant delivered another strong performance, continuing to exceed management’s expectations.



Acquisition of controlling stake in retail group (Pty) Ltd

On 1 August 2015 the Group acquired a 51% controlling stake in Retail Group (Pty) Ltd, Botswana, Famous Brands’ Master

Licence partner in Botswana, marking the commencement of a new strategic thrust in the Group’s growth programme. The

rationale for this strategy is twofold: firstly, to acquire outright or take a controlling stake in existing Master

Licence territories in neighbouring countries whereby the Group can exercise complete influence over its brands, and secondly,

to test the Group’s mettle in company-owned stores in advance of a potential broader foray into that arena.



The purchase consideration fell below the threshold of a categorised transaction in terms of the Listings Requirements

of the JSE Limited and was settled from cash reserves. All due diligence and regulatory conditions have been met.



The benefits of this acquisition will begin to accrue in the second half of the current fiscal year.



SUPPLY CHAIN

Famous Brands’ integrated Supply Chain comprises its Logistics and Manufacturing businesses, which are managed and

measured separately. In the review period consolidated revenue increased by 33% to R1.58 billion; in line with this,

operating profit rose 33% to R144 million. The operating margin was 9.1% (2014: 9.1%).



LOGISTICS

This division reported revenue of R1.35 billion (2014: R1.04 billion), an increase of 29%, while operating profit rose

by 12% to R43 million. This disparity is largely due to the initial set-up costs of commissioning the Group’s new Crown

Mines Distribution Centre, designed to take on the Gauteng region’s previously outsourced frozen and chilled product

basket. The facility was commissioned in May 2015, and it is anticipated that costs will stabilise in this high-volume

low-margin business once the operation builds momentum. The operating margin declined to 3.2% (2014: 3.7%). 



During the period, capital expenditure of R15 million was incurred on fleet expansion and facility upgrades.



MANUFACTURING

This division recorded an increase in revenue of 42% to R848 million including the first-time contribution of the

high-volume Cater Chain meat manufacturing business acquired in April 2015. Operating profit improved 45% to 

R101 million, while the operating margin rose very slightly to 11.9% (2014: 11.7%), contained by the impact of the 

low-margin Cater Chain business and the delayed integration of the previously outsourced pork and Halaal products 

business due to unforeseen Competition Commission conditions. The initial take-on of these products finally commenced 

on 1 October 2015, six months later than anticipated.



Margins were also forfeited in the deliberate strategy to support franchisees’ price competitive offering to

cost-conscious consumers.



Capital expenditure of R20 million was incurred, primarily on enhancing the Coega Cheese operation to expand its

production capacity and capability.



DIRECTORATE: APPOINTMENT OF A NON-EXECUTIVE DIRECTOR

Mr Moses Kgosana was appointed as an Independent non-executive director to the Board with effect from 22 May 2015.



Moses, a Chartered Accountant (SA), was formerly Chief Executive of KPMG Southern Africa as well as Chairman of

KPMG Africa. He also served as a member of the KPMG International Board as Lead director. Moses has 33 years of accounting,

auditing and advisory experience within the public and private sectors. 



The Board welcomes Moses and looks forward to his contribution.



PROSPECTS

Management is resolute in its pursuit of growth strategies outlined at the start of the year, and despite the current

challenges, remains focused on capitalising on the opportunities presented, including:



Franchising

This division’s performance will be enhanced with the opening of 139 additional restaurants in new markets across the

Group’s network; continued investment across the Group’s existing brand portfolio aimed at driving same-store growth;

and the benefits accruing from the integration of the franchise operation in Botswana.



In addition, given the good results delivered by the Group’s table service evening-dining restaurants, and in line

with management’s stated intent, further opportunities to expand in this market segment will be pursued.



Logistics

Management is optimistic that as the Crown Mines Distribution Centre facility is bedded down, opportunities exist to

enhance efficiencies and extract economies of scale across the Gauteng region. In this light, the Logistics division’s

margins should normalise and improve.



Manufacturing

In the forthcoming period a range of capacity building projects will be implemented in this division:

- Thirty per cent of the Group’s pork basket requirement was integrated into the Cater Chain business from 1 October

  2015. The balance of the basket will be phased-in over the next two and a half years, in line with Competition Commission

  conditions. Once completed this development is expected to transform the Cater Chain business. 

- A cream cheese manufacturing facility within the Coega Cheese plant was commissioned in September 2015 and is expected

  to be at full production capacity by the end of October 2015. This advancement will provide an additional income stream

  to the business.

- The Group’s new serviette manufacturing plant has been commissioned and commenced production in September 2015. The

  full benefits of this new facility for the business will be manifested in the forthcoming period.

- Previously outsourced bakery volumes in the Eastern Cape and Gauteng will be introduced into the Group’s Bakery

  plants, providing opportunity to grow turnover and margin in this division.

  

In conclusion, management is satisfied that this range of interventions across the component parts of the business,

Franchising, Logistics and Manufacturing, will enhance the Group’s performance over the next six months.



On behalf of the Board



SL Botha                           KA Hedderwick

Independent Chairman               Group Chief Executive



Midrand



22 October 2015





DIVIDEND ANNOUNCEMENT

The dividend has been declared from income reserves, which are in excess of operational requirements. The dividend

cover of 1.3 times is considered sustainable in light of Famous Brands’ strong cash-generating ability.

 

Notice of interim dividend declaration number 42 and salient features

Notice is hereby given that an interim gross dividend of 190 cents (2014: 155 cents) per ordinary share, payable out of

income, has been declared in respect of the six months ended 31 August 2015. The salient dates for the payment of the

interim dividend are detailed below:



Last day to trade cum-dividend                 Friday, 27 November 2015

Shares commence trading ex-dividend            Monday, 30 November 2015

Record date                                     Friday, 4 December 2015

Payment of dividend                             Monday, 7 December 2015



Share certificates may not be dematerialised or re-materialised between Monday, 30 November 2015 and Friday, 4 December 2015,

both dates inclusive.



In terms of Dividends Tax legislation, the following additional information is disclosed:

- The local Dividend Tax rate is 15%. 

- The net local dividend amount is 161.50 cents per share for shareholders liable to pay the Dividends Tax (2014: 131.75

  cents) and 190 cents per share for shareholders exempt from paying the Dividends Tax (2014: 155 cents).

- The issued share capital of Famous Brands is 99 812 435 ordinary shares.

- Famous Brands’ tax reference number is 9208085846.



By order of the Board



K Ntlha

Company Secretary



Midrand



22 October 2015





Condensed consolidated statement of financial position

at 31 August 2015

                                                                          Unaudited     Unaudited        Audited 

                                                                          31 August     31 August    28 February 

                                                                               2015          2014           2015 

                                                                               R000          R000           R000 

  ASSETS                                                                                                         

  Non-current assets                                                      1 340 727     1 176 611      1 196 839 

  Property, plant and equipment                                             251 816       202 250        208 951 

  Intangible assets                                                       1 022 226       910 936        922 576 

  Investments in associates                                                  58 106        54 240         57 568 

  Deferred tax                                                                8 579         9 185          7 744 

  Current assets                                                            754 204       568 622        655 421 

  Inventories                                                               287 740       214 729        186 513 

  Current tax assets                                                         55 635         6 165         26 404 

  Trade and other receivables                                               410 829       339 751        316 276 

  Cash and cash equivalents                                                       -         7 977        126 228 

  Total assets                                                            2 094 931     1 745 233      1 852 260 

  EQUITY AND LIABILITIES                                                                                         

  Equity attributable to owners of Famous Brands Limited                  1 463 046     1 281 891      1 389 388 

  Non-controlling interests                                                  46 024        20 434         27 766 

  Total equity                                                            1 509 070     1 302 325      1 417 154 

  Non-current liabilities                                                    69 312        50 370         58 702 

  Lease liabilities                                                           7 703             -          2 937 

  Deferred tax                                                               61 609        50 370         55 765 

  Current liabilities                                                       516 549       392 538        376 404 

  Trade and other payables                                                  428 748       316 587        331 256 

  Non-controlling shareholder loans                                          23 458        30 142         24 449 

  Short-term portion of interest-bearing borrowings                               -        32 513              - 

  Current tax liabilities                                                    19 643        13 296         20 699 

  Bank overdrafts                                                            44 700             -              - 

  Total liabilities                                                         585 861       442 908        435 106 

  Total equity and liabilities                                            2 094 931     1 745 233      1 852 260 





Condensed consolidated statement of profit or loss and other comprehensive income

for the six months ended 31 August 2015

                                                                          Unaudited     Unaudited                         Audited 

                                                                         six months    six months                            year 

                                                                              ended         ended                           ended 

                                                                          31 August     31 August                     28 February 

                                                                               2015          2014              %             2015 

                                                                               R000          R000         change             R000 

  Revenue                                                                 1 997 831     1 571 682             27        3 283 342 

  Cost of sales                                                          (1 165 248)     (886 467)                     (1 832 522)

  Gross profit                                                              832 583       685 215             22        1 450 820 

  Selling and administrative expenses                                      (485 872)     (382 199)            27         (778 796)

  Operating profit                                                          346 711       303 016             14          672 024 

  Net interest income/(expense)                                               1 085          (323)                           (269)

  Share of profit of associates                                               1 938         3 056                           7 608 

  Profit before tax                                                         349 734       305 749             14          679 363 

  Tax                                                                       (96 625)      (85 623)                       (194 651)

  Profit after tax for the period                                           253 109       220 126                         484 712 

  Exchange differences on translating foreign operations*                    38 248        (4 810)                         (2 957)

  Total comprehensive income for the period                                 291 357       215 316                         481 755 

  Profit after tax attributable to:                                                                                   

  Owners of Famous Brands Limited                                           241 291       210 513                         465 756 

  Non-controlling interests                                                  11 818         9 613                          18 956 

                                                                            253 109       220 126                         484 712 

  Total comprehensive income attributable to:                                                                         

  Owners of Famous Brands Limited                                           279 539       205 703                         462 799 

  Non-controlling interests                                                  11 818         9 613                          18 956 

                                                                            291 357       215 316                         481 755 

  Earnings per share                                                                                                  

  Basic earnings per share (cents)                                              242           212              14             468 

  Diluted earnings per share (cents)                                            240           212              13             468 

  * This item may be reclassified subsequently to profit or loss.  



  

Condensed consolidated statement of changes in equity

for the six months ended 31 August 2015

                                                                          Unaudited     Unaudited         Audited  

                                                                         six months    six months            year  

                                                                              ended         ended           ended  

                                                                          31 August     31 August     28 February 

                                                                               2015          2014            2015  

                                                                               R000          R000            R000  

  Balance at the beginning of the period                                  1 417 154     1 234 948       1 234 948  

  Total comprehensive income for the period                                 291 357       215 316         481 755  

  Dividends to shareholders                                                (204 552)     (170 506)       (327 389) 

  Share-based payments                                                        1 593           929           1 992  

  Share premium                                                                  23        19 983          24 106  

  Changes in ownership                                                       (9 032)            -               -  

  Disposal of non-controlling interest                                          580             -               -  

  Non-controlling interests arising on business combinations                 11 947         1 655           1 742  

  Balance at the end of the period                                        1 509 070     1 302 325       1 417 154  



  

Condensed consolidated statement of cash flows

for the six months ended 31 August 2015

                                                                          Unaudited     Unaudited         Audited 

                                                                         six months    six months            year

                                                                              ended         ended           ended 

                                                                          31 August     31 August     28 February 

                                                                               2015          2014            2015 

                                                                               R000          R000            R000 

  Cash generated before changes in working capital                          384 814       318 026         716 902 

  Increase in inventories                                                   (71 667)      (33 258)         (5 066) 

  Increase in receivables                                                   (74 567)      (59 205)        (36 694)   

  Increase in payables                                                       38 396        21 321          38 093 

  Cash generated from operations                                            276 976       246 884         713 235    

  Net interest received/(paid)                                                1 085          (323)           (269) 

  Tax paid                                                                 (128 569)      (84 460)       (201 524)  

  Cash available from operating activities                                  149 492       162 101         511 442 

  Dividends paid                                                           (204 552)     (169 090)       (326 969)  

  Net cash (outflow)/inflow from operating activities                       (55 060)       (6 989)        184 473  

  Cash flow from investing activities                                                                 

  Additions to property, plant and equipment                                (34 789)      (14 881)        (46 124) 

  Intangible assets acquired                                                 (1 477)       (1 644)         (9 382)

  Proceeds from disposal of property, plant and equipment                     2 033         1 483           3 098

  Proceeds from disposal of intangible assets                                     -           375             375 

  Net cash outflow on investments in subsidiaries                           (83 894)      (47 033)        (47 334)   

  Net cash inflow on investment in associates                                     -         1 750               - 

  Dividends received from associates                                          1 400             -           2 975 

  Net cash outflow from investing activities                               (116 727)      (59 950)        (96 392)

  Cash flow from financing activities                                                                 

  Borrowings repaid                                                               -       (32 487)        (65 000)   

  Acquired from non-controlling interest in subsidiary                       (9 612)            -               -  

  Proceeds from issue of equity instruments of Famous Brands Limited             23        19 983          24 106  

  Cash (repaid to)/contributed by non-controlling shareholders                 (991)          799          (4 895)

  Net cash outflow from financing activities                                (10 580)      (11 705)        (45 789) 

  Net (decrease)/increase in cash and cash equivalents                     (182 367)      (78 644)         42 292  

  Foreign currency effect                                                    11 439        (4 078)         (6 763)

  Cash and cash equivalents at the beginning of the period                  126 228        90 699          90 699 

  Cash and cash equivalents at the end of the period                        (44 700)        7 977         126 228 





Primary (business units) and secondary (geographical) segment report

for the six months ended 31 August 2015

                                                                          Unaudited     Unaudited                         Audited 

                                                                         six months    six months                            year 

                                                                              ended         ended                           ended 

                                                                          31 August     31 August                     28 February 

                                                                               2015          2014               %            2015 

                                                                               R000          R000          change            R000 

  Revenue                                                                                                                 

  Franchising and Development                                               321 374       298 976               7         615 038 

  Supply Chain                                                            1 581 594     1 190 146              33       2 506 610 

  Manufacturing                                                             848 102       596 631              42       1 257 691 

  Logistics                                                               1 346 252     1 044 827              29       2 223 196 

  Eliminations                                                             (612 760)     (451 312)             36        (974 277)

  Corporate                                                                   1 287           719                           1 740 

  South Africa                                                            1 904 255     1 489 841              28       3 123 388 

  International (Rest of Africa and UK)                                      93 576        81 841              14         159 954 

  UK                                                                         53 457        53 432               -         102 470 

  Rest of Africa                                                             40 119        28 409              41          57 484 

  Total                                                                   1 997 831     1 571 682               3         283 342 

  Operating profit                                                                                                        

  Franchising and Development                                               180 697       173 908               4         365 353 

  Supply Chain                                                              143 908       108 159              33         261 725 

  Manufacturing                                                             101 046        69 889              45         172 538 

  Logistics                                                                  42 862        38 270              12          89 187 

  Corporate                                                                    (389)        1 457                           1 349 

  South Africa                                                              324 216       283 524              14         628 427 

  International (Rest of Africa and UK)                                      22 495        19 492              15          43 597 

  UK                                                                          9 830         8 767              12          20 584 

  Rest of Africa                                                             12 665        10 725              18          23 013 

  Total                                                                     346 711       303 016                         672 024 



  

Statistics and ratios                    

for the six months ended 31 August 2015  

                                                                          Unaudited     Unaudited                         Audited

                                                                         six months    six months                            year

                                                                              ended         ended                           ended

                                                                          31 August     31 August               %     28 February

                                                                               2015          2014          change            2015

  Earnings per share (cents)                                                                                             

  Basic earnings per share                                                      242           212              14             468

  Diluted earnings per share                                                    240           212              13             468

  Headline earnings per share                                                   241           212              14             467

  Diluted headline earnings per share                                           240           211              14             467

  Dividends per share (cents)                                                                                                 355 

  Interim                                                                       190           155              23             155 

  Final                                                                                                                       200 

  Ordinary shares (000)                                                                                                  

  In issue                                                                   99 812        99 712                          99 807 

  Weighted average                                                           99 809        99 440                          99 581 

  Diluted weighted average                                                  100 464        99 605                         100 236 

  Operating profit margin (%)                                                  17.4          19.3                            20.5 

  Net debt/equity (%)                                                           3.0           1.9                            (8.9)

  Net asset value per share (cents)                                           1 512         1 306                           1 420 

  Dividend cover on headline earnings (times)                                   1.3           1.4                             1.3 

                                                       

Notes to the condensed consolidated interim financial statements

for the six months ended 31 August 2015



  Famous Brands Limited (“the company”) is a South African registered company. The condensed consolidated interim financial 

  statements of the company comprise the company and its subsidiaries (together referred to as “the Group”) and the Group’s 

  interest in associates. 

 

  1.  Statement of compliance 

      These condensed consolidated interim financial statements have been prepared in accordance with the recognition and 

      measurement criteria of International Financial Reporting Standards (“IFRS”), the presentation as well as disclosure 

      requirements of IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Pronouncements issued by the Financial 

      Reporting Standards Council, the JSE Listings Requirements, and the Companies Act of South Africa.

  

  2.  Basis of preparation 

      The accounting policies applied in the presentation of the condensed consolidated interim financial statements are 

      consistent with those applied for the year ended 28 February 2015, except for new standards that became effective for 

      the Group’s financial period beginning 1 March 2015, refer to note 3. 

 

      The condensed consolidated interim financial statements were prepared on the historical cost basis, under the supervision 

      of Norman Richards, Group Financial Director.

  

  3.  Changes in accounting policies  

      The Group has adopted the following new standards and amendments to standards, including any consequential amendments to 

      other standards, with a date of initial application of 1 March 2015:  

      - Amendments to IFRS 10, IFRS 12 and IAS 27; and 

      - IAS 32 Financial Instruments: Presentation. 



      The adoption of the new standards listed above did not have a significant impact on the Group’s condensed consolidated 

      interim financial statements. 

 

                                                                                           Unaudited   Unaudited      Audited 

                                                                                          six months  six months         year 

                                                                                               ended       ended        ended 

                                                                                           31 August   31 August  28 February 

                                                                                                2015        2014         2015 

                                                                                                R000        R000         R000 

  4.  Earnings per share                                                                                                     

  4.1 Reconciliation between earnings and diluted earnings                                                                   

      Profit attributable to equity holders of Famous Brands Limited                         241 291     210 513      465 756 

      Adjustment for:                                                                                                        

      After tax interest receivable on future share placements                                     -         240        3 348 

      Diluted earnings                                                                       241 291     210 753      469 104 

      Earnings per share (cents)                                                                                             

      Basic                                                                                      242         212          468 

      Diluted                                                                                    240         212          468 

  4.2 Reconciliation between headline earnings and diluted headline earnings                                                 

      Profit attributable to equity holders of Famous Brands Limited                         241 291     210 513      465 756 

      After tax profit on disposal of property, plant and equipment                             (464)       (193)        (526)

      After tax remeasurements included in equity-accounted earnings of associates                 -           -          (29)

      Headline earnings                                                                      240 827     210 320      465 201 

      Adjustment for:                                                                                                        

      After tax interest receivable on future share placements                                     -         240        3 348 

      Diluted headline earnings                                                              240 827     210 560      468 549 

      Headline earnings per share (cents)                                                                                    

      Basic                                                                                      241         212          467 

      Diluted                                                                                    240         211          467 



                                                                                           Unaudited   Unaudited      Audited

                                                                                          six months  six months         year

                                                                                               ended       ended        ended

                                                                                           31 August   31 August  28 February

                                                                                                2015        2014         2015

                                                                                                R000        R000         R000

  5.  Financial instruments 

      The following table summarises the carrying amount of financial assets and 

      liabilities recorded at 31 August 2015:                                     

      Financial assets  

      Loans and receivables: 

      Trade and other receivables                                                            402 403      332 540     302 136

      Cash and cash equivalents                                                                    -        7 977     126 228

                                                                                             402 403      340 517     428 364

      Financial liabilities                                                                                                  

      Measured at amortised cost:                                                                                            

      Borrowings                                                                                   -       32 513           -

      Trade and other payables                                                               420 969      302 803     331 256

      Bank overdrafts                                                                         44 700            -           -

      Fair value through profit or loss:                                                                                     

      Non-controlling shareholder loan                                                        23 458       30 142      24 449

                                                                                             489 127      365 458     355 705

      

      For financial instruments measured at fair value through profit or loss, in terms of the hierarchy, these are classified

      as level 3 as the valuation techniques used are not based on observable market data. For these financial instruments the 

      carrying amount is equal to its fair value as these loans are interest-free and have no fixed terms of repayment. 



  6.  Related party transactions 

      The Group entered into various sale and purchase transactions with related parties, in the ordinary course of business, on 

      an arm’s length basis. The nature of related party transactions is consistent with those reported previously. 

  

  7.  Business combinations 

      The Group acquired controlling stakes in Cater Chain Food Services (Pty) Ltd and Retail Group (Pty) Ltd (Botswana) effective 

      1 April 2015 and 1 August 2015 respectively. The initial accounting for these acquisitions is in the process of being finalised. 





Directors and administration



Directors 

NJ Adami, SL Botha (Independent Chairman), CH Boulle, P Halamandaris, P Halamandaris (Jnr), T Halamandaris, 

JL Halamandres, RM Kgosana, KA Hedderwick (Group Chief Executive)*, DP Hele (Chief Executive Officer - Food

Services)*, NS Richards (Group Financial Director)* 

and BL Sibiya

*Executive



Company Secretary

K Ntlha



Registered office

478 James Crescent, Halfway House, Midrand, 1685

PO Box 2884, Halfway House, 1685

Telephone: +27 11 315 3000

Email: investorrelations@famousbrands.co.za

Website address: www.famousbrands.co.za



Transfer secretaries

Link Market Services (Pty) Ltd

Registration number: 2000/007239/07

Rennie House, 19 Ameshoff Street, Braamfontein, 2001

PO Box 4844, Johannesburg, 2000



Sponsor

The Standard Bank of South Africa Limited 

Registration number: 1969/017128/06

30 Baker Street, Rosebank, 2196



Auditors

Deloitte & Touche



Bankers

Absa Bank Limited

Bidvest Bank Limited

FirstRand Bank Limited

Investec Bank Limited

Nedbank Limited

Standard Bank Limited





www.famousbrands.co.za
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