Famous Brands (FBR) H1 2027 earnings summary

Executive summary

• H1 revenue rose 2.3% to R4.336bn, while operating profit fell 4.7% to R375m and operating margin narrowed to 8.6% from 9.3%.

• Free cash flow more than doubled to R459m; Leading Brands and Supply Chain gains helped offset weakness in Signature Brands and regional markets.

Financial highlights

• Revenue increased 2.3% to R4.336bn; gross profit was R1.811bn, down 0.1%.

• Operating profit fell 4.7% to R375m; profit before tax was R296m versus R355m, and profit for the period was R199.8m versus R260.1m.

• HEPS declined 3.2% to 228c; basic EPS fell 23.4% to 181c, reflecting the R41m goodwill impairment among specified adjusting items.

• Cash generated from operations rose 19.5% to R564m; free cash flow increased 108% to R459m from R221m.

• Interim dividend increased 4.9% to 170c per share from 162c.

Outlook and guidance

• Forecasts indicate revenue, profit and free cash flow growth over the year ahead, although economic uncertainty is expected to keep growth under pressure.

• Franchise partners remain committed to investment; focus areas include selective growth, value-led propositions, drive-thrus, smaller formats and efficiency.

• Corrective actions in Signature Brands, AME and Retail supported interim progress; Signature Brands actions are expected to show more clearly in FY2027 results.