Spur Corporation (SUR) H2 2024 earnings summary

Executive summary

• Franchise restaurant turnover grew 11.5% to ZAR 10.6 billion, with strong growth across most brands and regions; excluding Doppio Collection, growth was 7.4%.

• Revenue rose 14.1% to ZAR 3.5 billion, driven by franchise, manufacturing, and retail store sales.

• Headline earnings increased by 10.8%, with headline earnings per share up 10.7% to 287.92 cents; final dividend declared at 118 cents per share, totaling 213 cents for the year.

• 701 restaurants operate in 13-14 countries, with 75 new outlets opened, 13 closed, and 38 Doppio Collection restaurants added.

• Acquisition and integration of Doppio Collection contributed to significant growth in the speciality segment.

Financial highlights

• Comparable profit before tax up 9.3% year-over-year; profit before tax rose 7.3% to ZAR 341.7 million.

• Gross profit margin improved to 32% from 30.5% last year; gross profit rose 19.4% to ZAR 1.11 billion.

• Net profit and EPS both increased by 10.7%.

• Return on equity reached 29.6%.

• Cash on hand at year-end was ZAR 428 million, with net cash outflow of ZAR 28.1 million due to acquisitions and investments.

Outlook and guidance

• Trading conditions remain unpredictable; subdued consumer spending expected to persist.

• Focus on tech-enabled restaurants, loyalty programs, supply chain efficiency, and continued innovation.

• Plans to open 47 new stores locally and 13 internationally in fiscal 2025, with continued expansion in small towns and international markets.