Wimpy and Steers owner's recovery weighed down by Covid-19 restrictions and civil unrest

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Steers owner Famous Brands' performance has improved in the past six months
Steers owner Famous Brands' performance has improved in the past six months
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Wimpy owner Famous Brands says the recovery of its performance has been hampered by the July riots, Covid-19 restrictions, and a tough South African economy.

On Wednesday, the group reported its results for the six months ended 31 August, saying its revenue increased by 50%, to R3 billion. Its headline earnings per share grew by 140% to 97 cents, while its operating profit increased by 302% to R222 million.

"Home delivery played a vital role in the Group's success in the past six months, with 14% year on-year turnover growth across own and third-party aggregators," said Famous Brands.

However, Famous Brands said it will not pay an interim dividend, as it focuses on reducing its debt.

The group owns quick-service restaurant brands like Steers, Debonairs, Fishaways, and Milky Lane, as well as casual dining establishments Wimpy, and Mugg & Bean. Its signature brands include Vovo Telo, Turn n Tender, Mythos and Salsa Grill. 

In addition to South Africa, it has also operations in the rest of Africa, Middle East and the UK.

In the local market, Covid-19 restrictions that included limitations and bans on alcohol trade, impacted the group. The unrest that took place in KwaZulu-Natal and Gauteng in July, resulted in 109 stores being damaged, while 99 restaurants were declared none-operational.

Famous Brands also saw damages at its logistics facility in Westmead, KwaZulu-Natal. However, it managed to open 55 stores by the end of August.

The Steers owner said it has since provided franchisees with royalty relief, assistance with insurance claims and bridging finance.

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