Famous Brands (FBR) H2 2026 earnings summary

Executive summary

• Revenue increased by 5.6% to ZAR 8.744 billion, with operating profit up 4.5% to ZAR 955 million, driven by South African operations.

• Headline earnings per share rose 12.1% to 583 cents, and net results increased 11.8% year-over-year.

• Free cash flow decreased 9.1% to ZAR 662 million, but strong cash generation enabled the first-ever share buybacks and a 10.7% increase in the annual dividend to 382 cents per share.

• Expansion included 140 new restaurant openings, 181 revamps, and entry into Malaysia and Sudan via capital-light licensing.

• The ZAR 191 million Midrand cold storage facility was completed on time and budget, marking the peak of the CapEx cycle.

Financial highlights

• Revenue up 5.6% year-over-year to ZAR 8.744 billion; operating profit up 4.5% to ZAR 955 million.

• Headline earnings per share grew 12.1% to 583 cents; total dividend for the year increased 10.7% to ZAR 3.82 per share.

• Net debt to EBITDA improved to 0.82x from 0.89x year-over-year.

• CapEx rose to ZAR 214 million, representing 2.4% of revenue.

• Free cash flow was lower due to strategic CapEx, but cash generation from operations increased by 1.3%.

Outlook and guidance

• CapEx expected to normalize in FY 2027 after peak investment in FY 2026.

• Focus remains on cost containment, operational efficiencies, and driving break-even in loss-making segments (AME, UK, Signature Brands, Retail) by FY 2027.

• Continued focus on value offerings, operational efficiencies, and geographic expansion, including Malaysia and Sudan.

• Early FY 2027 trading has held up better than anticipated despite fuel price pressures.