FAMOUS BRANDS LIMITED - Voluntary Performance Update For The Twelve Months Ended 28 February 2021

Voluntary Performance Update For The Twelve Months Ended 28 February 2021

FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR
ISIN code: ZAE000053328
(“Famous Brands” or “the Group” or “the Company”)

VOLUNTARY PERFORMANCE UPDATE FOR THE TWELVE MONTHS ENDED 28 FEBRUARY 2021

BACKGROUND

     •   The announcement of the COVID-19 pandemic in March 2020 coincided with
         the first month of the Group’s review period, and its impact has been
         evident over the entire twelve months, in varying degrees, as the
         respective countries’ risk-adjusted strategies progressed from total
         lockdown to gradual easing of restrictions and then returning
         restrictions.
     •   Across our trading markets, in South Africa (“SA”), rest of Africa and
         the Middle East (“AME”) and the United Kingdom (“UK”), the negative
         financial impact of the COVID-19 global pandemic (“pandemic”) and
         resultant national lockdowns and trading restrictions has been severe.
     •   During the lockdowns, in line with regulations, our SA and UK
         operations were shut in April 2020, apart from the SA retail division.
         Prescribed restrictions in the AME region were slightly less onerous,
         affording some trading activity. The gradual easing of restrictions in
         SA and the UK in the first and second half of the reporting period
         enabled improved performance of the business while complying with
         regulations.
     •   Aligned with our three-year roadmap, and accelerated by the pandemic,
         our focus over the review period was to right-size the business, reduce
         costs, and preserve cash to facilitate balance sheet flexibility.


SALES PERFORMANCE

BRANDS

The Group’s brand portfolio is categorised into Leading (mainstream) and
Signature (niche) brands.

SA

Leading brands' system-wide sales*# declined by 28.6%, while like-for-like
sales** decreased 29.1%. Signature brands' system-wide sales^ deteriorated
66.6%, while like-for-like sales reduced by 55.1%.
AME

In the context of less stringent trading restrictions, the AME region
delivered solid results. System-wide sales in this region declined by 22.9%.
* System-wide sales refer to sales reported by all restaurants across the
network, including new restaurants opened during the period.
** Like-for-like sales refer to sales reported by all restaurants across the
network, excluding restaurants opened or permanently closed during the
period.
# Leading brands' sales refer to sales of the Leading brands trading in SA.
^ Signature brands' sales refer to SA sales as well as cross-border sales
where the brand is a Joint Venture partnership and the brand is not managed
by its AME management team.
AME sales are denominated in Rand terms.

SUPPLY CHAIN (Manufacturing and Logistics divisions)

This business, which supports the front-end brands division in SA, was
particularly hard hit by restrictions. Compared to the prior corresponding
period, Manufacturing revenue declined by 24% while Logistics revenue
decreased by 27%.

RETAIL

This division, which supplies third-party retailers and wholesalers in SA
with branded licensed products, was permitted to trade throughout the
lockdown. Sales reported for the period were R151 million.

GBK Restaurants Limited(“GBK”) UK and Ireland

      •   The business was placed into Administration on 14 October 2020 in
          accordance with the insolvency legislation in the UK.

      •   The Group’s investment in GBK was impaired in full (at R1.3 billion,
          net of tax) when the Group published its interim results for the six-
          month period ended 31 August 2020.

      •   The Group awaits the finalisation of the Administration process being
          handled by the Administrator. However, there will be no further
          operating losses impacting the Group’s results from the date on which
          GBK entered into Administration as the Group no longer has control
          over GBK.

      •   Disclosure that facilitates an understanding of the Group’s results in
          the context of the deconsolidation of GBK from the Group’s results
          will be provided when the year-end results are published.

OTHER

The Board of Directors of Famous Brands (“Board”) does not at the date of
this announcement have the required certainty to provide details of the
anticipated minimum percentage nor the range expected for earnings per share
(“EPS”) for the year ended 28 February 2021. A trading statement will be
provided as and when the Board has the required certainty.
We continue to maintain rigorous health and safety protocols across our
operations to play our part in reducing the spread of the virus. These
measures have enabled the business to deliver responsible, safe,
uninterrupted service to our customers and ensure the well-being of our
employees.

The Group's results for the year ended 28 February 2021 will be published on
SENS on or about Tuesday, 25 May 2021.

The financial information on which this announcement is based has not been
reviewed or reported on by the Group’s external auditors.


11 March 2021
Midrand

Sponsor
The Standard Bank of South Africa Limited

Date: 11-03-2021 07:05:00
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