Steers Holdings, the fast food franchise company that represents the Steers, Debonairs Pizza, FishAways and Church's Chicken brands, on Monday reported that headline earnings per share were up 39 percent to 14.5 cents for the six months ended August 31.
Gross revenue for the group rose by 15 percent to R163.1 million from R142.05 million previously, while attributable profit was up 42 percent to R9.4 million from R6.6 million.
The group declared a capital distribution of 6.5 cents per share in lieu of dividends.
The group said the results reflected the health of the group's brand portfolio, which is underpinned by a world-class franchising system.
During the period under review period Steers extended its reach into the fast-growing franchised coffee outlet category with the acquisition of the House of Coffees Coffee Shops, ESP Illy Boutique, and Brazilian Coffee Shop brands.
In addition, Steers purchased the entire shareholding of Pleasure Foods, comprising the Wimpy and Whistle Stop brands, for R150.6 million.
The franchising division's gross revenue improved by 13 percent to R31.3 million, while operating profit was boosted 54 percent to R5.7 million.
Steers' manufacturing and distribution unit saw gross revenue rise 16 percent to R132.6 million, while operating profit increased 30 percent to R8.5 million. The group attributed this to improved efficiencies in both purchasing and manufacturing processes.
Steers noted that there was no significant disruption to business or financial loss as a result of the fire that occurred at the groups' Midrand offices and warehouse facilities in June 2003.
To date, the group has received interim insurance payments amounting to R19 million and final settlement of all liabilities is expected before the end of the calendar year.
The group expected its trading environment to remain competitive, but was confident that current performance would continue through to end of the financial year. - Staff reporter