JSE-listed multi-brand restaurant franchisor Spur Corporation says headline earnings for the complete 12 months ended June 2022 surged by 31% to R121 million, seeing the group posting a robust post-Covid-19 restoration.
Increased foot visitors to Spur areas has seen the group reaching a 32.5% rise in income to R2.4 billion, an enchancment it says was supported by company-owned eating places and the manufacturing and distribution division posting greater gross sales figures in addition to total improved restaurant turnovers.
Diluted headline earnings per share for the interval surged 30.9% to 143.68 cents, whereas group revenue earlier than earnings tax elevated by 41.9% to R209.7 million.
Spur has declared a closing dividend of 78 cents per share, bringing the overall dividend for the interval to 127 cents. The dividend has been declared from earnings reserves.
“Although economic conditions remain challenging in the face of higher inflation and severe pressure on consumer disposable income, the group’s business model continues to demonstrate its resilience,” Spur says in a assertion.
“The group embarked on robust and aggressive marketing campaigns to increase brand awareness, everyday value and consumer convenience, including takeaways, click and collect services and third-party deliveries,” it notes.
Segmental assessment
According to Spur Corporation, franchised restaurant gross sales grew by 28.2% through the interval, a restoration that it says now exceeds pre-pandemic gross sales ranges.
The group additional provides that inside its South African operations, well-known model Spur carried a lot of the development, posting a 30.1% rise in restaurant gross sales.
“Panarottis, John Dory’s and RocoMamas all performed well while the speciality brands lifted sales by 52% with a strong recovery in restaurant sales in The Hussar Grill.”
Post the Covid-19 led rise in demand for comfort and takeaway choices, the group has reported a 30% rise in takeaways. This development it says was led by RocoMamas which noticed a 57% surge and Panarottis Pizza which reported development of 39%.
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As it stands, Spur Corporation has expanded its presence to 631 shops, with 547 shops inside South Africa, whereas the remaining 84 shops are scattered throughout the remainder of Africa, Mauritius and the Middle East.
During the interval, the group opened 23 new eating places in South Africa, however closed 15. An additional eight eating places had been opened in worldwide areas.
Looking forward, Spur plans to open a additional 32 new eating places in South Africa and 9 extra within the worldwide house through the 2023 monetary 12 months.
Tightening spending surroundings
Noting the plight of customers within the present interval– within the face of elevated gas, meals and electrical energy costs in addition to rising rates of interest – the group acknowledges the potential influence diminishing disposable earnings could have on its enterprise.
However, CEO Val Nichas stays optimistic that the financial surroundings, though difficult, will nonetheless present Spur with alternatives for development.
“The widespread changes in the trading environment and shifting consumer trends creates opportunities for innovation, including new meal solutions, expansion of restaurant formats and alternative trading channels,” he says.
“We are taking advantage of the global trend towards convenience with the growth in e-commerce and on-demand delivery as well as expanding our ranges of plant-based and vegan menu options for health conscious and environmentally aware consumers,” Nichas provides.
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