FAMOUS BRANDS LIMITED - Trading Statement for the six months ended 31 August 2019

Trading Statement for the six months ended 31 August 2019

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 Company” or “the Group”)

TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 AUGUST 2019

Famous Brands is satisfied that a reasonable degree of certainty exists that the Group’s financial
results for the six months ended 31 August 2019 (“the review period”) will differ by at least 20% from
those reported for the six months ended 31 August 2018 (“the prior comparable period”), and thus is
in a position to issue this trading statement in terms of Section 3.4(b)(i) of the Listings Requirements
of the JSE Limited.

BACKGROUND

On 11 September 2019, the Group published a voluntary performance update (“the update”) for its
South African (“SA”) and Rest of Africa and Middle East (“AME”) operations for the six months ended
31 August 2019, as well as for the Group’s GBK Restaurants Limited (“GBK”) business, for the 26-week
period ended 25 August 2019.

The update advised that the Group’s results for the six months ended 31 August 2019 are in line with
management’s expectations.

- Brands: revenue growth was recorded across the SA and AME operations. In the UK, GBK’s results
  are in in line with management’s projections, with the business continuing to benefit from extensive
  operational improvements and the Company Voluntary Arrangement (“CVA”) restructuring
  programme completed over the past year.

- Manufacturing: a marginal decline in sales was reported by the division due to the loss of a major
  client in the Lamberts Bay Foods’ business.

- Logistics: revenue growth of 3% was recorded, however, margins deteriorated materially due to
  softer sales; planned once-off costs related to the relocation of the Free State facility; sustained low
  food inflation; and our strategy to support franchisees through absorbing margin pressure.

RESULTS

There has been no change to the information provided in the update.

Basic earnings per share (“EPS”) are expected to be within the range of 143 cents per share to 175
cents per share; this is an approximate improvement of 125% to 131%, compared to the prior
corresponding period’s basic loss of (572) cents per share. The anticipated increase in EPS relates
primarily to recognition of an impairment of R874 million in the GBK UK business in the prior
comparable period; no impairment has been recognised for the current review period.


The Group’s results for the review period will be released on SENS on or about Monday, 28 October
2019.

A live audio webcast of the results will be held at 10h00 (SAST) on 28 October 2019.

To pre-register link to: www.corpcam.com/FamousBrandsOctober2019
The financial information on which this trading statement is based has not been reviewed or reported
on by the Group’s external auditors.

4 October 2019
Midrand

Sponsor
The Standard Bank of South Africa Limited

Date: 04/10/2019 10:08:00
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