FamousBrands reports strong interim growth with 8% HEPS increase and R4,2 billion revenue for H1 2025
Dividend per share
162 cents
8.0%
Revenue
R4.2 billion
5.6%
Operating profit
R393 million
5.8%
Headline earnings per share (HEPS)
236 cents
8.0%
Group profile
Famous Brands is Africa's leading food services franchisor, with restaurants in South Africa, Southern African Development Community (SADC), the Rest of Africa and the Middle East (AME) and the United Kingdom (UK).
Our vertically integrated business model comprises four pillars: Brands, Manufacturing, Logistics and Retail.
Our portfolio of 15 iconic restaurant brands appeals to consumers across income and demographic bands, meal preferences and value propositions. The portfolio is segmented into Leading Brands (mainstream) and Signature Brands (niche). Leading Brands are further categorised as Quick Service Restaurants (QSR) and Casual Dining Restaurants (CDR).
Our QSR brands prioritise takeaway and delivery with smaller sit-down areas, while CDR brands offer a full-service, sit-down experience.
Our Signature Brands offer a range of bespoke offerings. Our Supply Chain refers to our Manufacturing, Logistics and Retail operations, which offer our franchise partners efficient supply, price certainty, product innovation and margin management.
Our Retail operations sell products to major national retailers.
Our restaurant network
We have 3 008 restaurants across 20 countries.
Restaurants per region
SA SADC AME UK
2 666 227 57 58
Operating context1
South Africa's economic growth increased to 0.8% in Q2 2025, a rebound from 0.1% growth in Q1.
Other positive developments include the cessation of load shedding, improvements to the national logistics network and relative political stability. In addition, traffic has increased, supported by return-to-office mandates, boosting restaurant sales.
Consumer spending remains constrained due to high unemployment, household indebtedness and elevated inflation in recent years. Competition for consumer spending is intense, especially in the QSR category, as brands invest in campaigns to promote core categories at competitive prices.
Consumers seek value in an increasingly competitive environment, including competition from supermarket retailers' rapid delivery offerings.
Financial performance
Our financial performance demonstrated strong momentum, with positive results across key financial metrics.
Revenue increased by 5.6% to R4.2 billion (2024: R4.0 billion), and operating profit increased by 5.8% to R393 million (2024: R371 million). The Group's operating profit margin was 9.3% (2024: 9.2%).
Headline earnings per share (HEPS) increased by 8.0% to 236 cents (2024: 218 cents), while basic earnings per share (BEPS) increased by 6.8% to 236 cents (2024: 221 cents).
Sustained consumer preference for our South African Leading Brands portfolio, particularly for the QSR brands, led to robust revenue growth, which in turn lifted the performance of our Manufacturing and Logistics divisions. In addition, we experienced strong growth in our brand footprint.
We continued to pursue operational efficiencies and cost containment initiatives. This included the opening of our cold storage facility in June 2025, which was completed on time and within budget.
The new facility will increase capacity, reduce transport costs and result in savings from more energy-efficient refrigeration technologies.
Capital allocation
The Group's total borrowings position at 31 August 2025 was R1.1 billion (2024: R1.2 billion). During the review period, we repaid R62 million of borrowings and raised a similar amount for the development of the cold storage facility.
The Group's finance costs on borrowings decreased by 23% compared to the same period in 2024, due to a reduction in debt and interest rate cuts (50 basis points).
Capital expenditure
We invested R140 million (2024: R91 million) in capital expenditure, allocating capital in line with the Group's strategy.
Dividend
The Board declared an interim dividend of 162 cents per share (2024: 150 cents per share). The dividend will be paid from profits for the review period, amounting to a total of R162 million. In terms of dividends tax legislation, the following additional information is disclosed:
Event dates
Declaration date Wednesday, 22 October 2025
Last day to trade"cum dividend" Monday, 15 December 2025
Shares commence trading "ex-dividend" Wednesday, 17 December 2025
Record date Friday, 19 December 2025
Payment of dividend Monday, 22 December 2025
Those shareholders of the Group who are recorded in the Company's register as at the record date will be entitled to the dividend.
In terms of dividends tax legislation, please note the following:
The local dividend tax rate is 20%.
The net local dividend amount is 129.60 cents per share for shareholders liable to pay the dividends tax and 162 cents per share for shareholders exempt from paying the dividends tax.
The issued share capital of Famous Brands is 100 202 284 ordinary shares.
Operational review Brands
Revenue for SA increased by 6.3% to R599 million (2024: R563 million).
Operating profit declined by 0.4% to R231 million (2024: R232 million).
System-wide sales across our SA brand portfolio improved by 5.5% and like-for-like sales increased by 2.4%.
Leading Brands - SA
Leading Brands' system-wide sales increased by 6.0%, and like-for-like sales increased by 2.6%. Restaurant sales were boosted by an uptick in local tourism and increased traffic resulting from return-to-office mandates.
Our QSR brands performed strongly due to their competitive value offerings, successful promotions and prudent cost management.
Leading Brands experienced strong growth in its brand footprint, with 27.8% of new restaurants allocated to existing franchise partners. We expanded our footprint of smaller restaurant formats and drive-thrus to meet consumer demand for convenience. The pleasing revamp activity demonstrates franchise partners' trust in our brands and willingness to reinvest in their businesses.
Signature Brands - SA
The Signature Brands portfolio delivered softer results than anticipated, driven by lower consumer demand for premium dining out. Like-for-like sales and system-wide sales declined by 0.6% and 0.4%, respectively. Operating loss margin was (7.0%) (2024: (6.7%)).
SADC
The region experienced steady growth, with revenue increasing by 2.7% to R224 million (2024: R218 million).
Operating profit declined by 11.8% to R24 million (2024: R28 million). Operating profit margin was 10.9%
(2024: 12.7%). Botswana's system-wide restaurant sales decreased by 2.3%, and like-for-like sales declined by 5.5% compared to the prior period. Zambia's system-wide sales were 4.8% higher than the prior period, while like-for-like sales declined by 3.2%.
AME (outside of SADC)
Revenue declined by 5.4% to R33 million (2024: R35 million). Several markets are experiencing tough trading conditions and high inflation. Our brand presence remains sub-scale in the region.
Operating loss was (R19 million) (2024: (R22 million)), while the operating loss margin was (57.2%) (2024: (63.4%)).
UK
The UK restaurant industry has been battling with cost pressures, cautious consumers and economic uncertainty, resulting in constrained sales. Revenue declined by 5.7% to R65 million (2024: R69 million). Operating profit decreased to R1 million (2024: R3 million). Operating profit margin was 2.2% (2024: 4.6%).
Looking forward
We remain cautiously optimistic regarding the remainder of the 2026 financial year, with modest but positive growth predicted for South Africa, underpinned by recovering domestic demand, lower inflation and interest rates and a more stable energy supply.
Competitive intensity, especially from value-driven offerings, is expected to increase, requiring strategic flexibility to maintain market share and profitability. This involves agility with menu options, promotions and loyalty programmes. We will leverage our new consumer engagement platform to provide compelling, personalised offers to our customer base. The restaurant pipeline is healthy with demand for Leading Brands and Signature Brands
The principle of two separate portfolios is working well, with resources being dedicated appropriately to the relevant growth opportunities.
Expansion in the SADC region will follow a targeted focus on specific markets. We will remain cautious in the AME markets. We are committed to reducing the drag on our profitability from the AME and Signature Brands portfolios.
The Manufacturing division is deploying manufacturing technology, processes and resource planning to increase capacity, improve production yields and reduce waste. We will also grow revenue by increasing the range of products offered to franchise partners and the retail market.
Our Logistics division will improve its efficiencies through fleet mix optimisation, route planning, bringing retail frozen distribution in-house and taking on the distribution of the Coca-Cola beverage basket in eight provinces.
Our warehouse management system will support better planning and decision-making.
There are strong indications that Retail performance will improve in the remainder of the 2026 financial year. We are executing a retail marketing strategy to secure new product listings and promote our ranges to consumers.
We have confidence in our ability to innovate and grow, supported by dedicated franchise partners. Improved profitability will be supported by our ongoing efforts to contain costs and improve efficiency.
We are committed to improving shareholder returns, reducing our legacy debt and supporting the sustainability of our franchise partners.
Supply chain ( Manufacturing)
Manufacturing revenue increased by 10.4% to R1.8 billion (2024: R1.6 billion), mainly driven by price inflation and a positive shift in product mix. The division experienced strong volume growth for core lines, including cheese, sauces and meat products.
Operating profit increased by 23.6% to R185 million (2024: R150 million) due to improved production yields, reduced input costs for key ingredients and cost savings realised from the division's efficiency drive.
Above-inflation expenses include municipal and electricity price hikes, as well as increased repairs and maintenance. Beef prices in the second quarter were challenging, resulting in R30 million margin erosion as pricing was absorbed during the market volatility. Operating profit margin was 10.4%(2024: 9.3%).
Logistics
Logistics revenue increased by 7.4% to R2.7 billion (2024: R2.5 billion) as the division's case volumes grew by 1.9% and price inflation increased by 5.1%. Operating profit declined by 14.8% to R29 million (2024: R34 million), due to inflationary cost pressures. Operating profit margin decreased to 1.1% (2024: 1.4%).
Retail
Retail revenue remained flat at R171 million (2024: R171 million), primarily due to lower sales volumes of frozen potato chips resulting from sustained competition.
Volumes for coffee products at restaurants and retail also remain depressed due to higher global coffee prices. The division had an operating loss of (R12 million) (2024: (R2.6 million)). We launched three new products (2024: one).
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