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FBR/Famous Brands Limited


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#101 gamma

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Posted 24 June 2013 - 11:25 AM

Added more at 9040.


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#102 gamma

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Posted 20 June 2013 - 07:55 AM

Interview with Hedderwick yesterday

http://www.moneyweb....t-update/r-1340


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#103 Safrican

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Posted 19 June 2013 - 02:02 PM

Interesting 1 year comparison of the big 3 

Spur, Famous Brands and Taste

 

 

attachicon.gifScreen Shot 2013-06-18 at 9.56.05 PM.png

 

Thanks for the comparison. Certainly helps with a decision I have been battling with.


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#104 gamma

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Posted 19 June 2013 - 10:04 AM

1st Qtr update SENS this morning

 

 

 

 

 

FAMOUS BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1969/004875/06)
Share code: FBR
ISIN code: ZAE000053328
(“Famous Brands” or “the Group”)




          FAMOUS BRANDS DEFIES RETAIL SLUMP TO DELIVER
                     STRONG QUARTERLY RESULTS


Johannesburg, Wednesday, 19 June 2013:   Famous Brands has reported
robust results across the Group’s business - encompassing its
branded franchise network, logistics, and manufacturing operations -
for the quarter March to May 2013. System-wide franchise sales
increased 16.8%, comprising a 16% improvement in South Africa and a
27.2% improvement in sales in the rest of Africa region. Like-on-
like sales grew 9.6%, with South Africa and the rest of Africa
operations delivering growth of 9.3% and 13.2% respectively. he
average weighted menu price increase was 4.25% illustrating the real
growth achieved.

Famous Brands CE Kevin Hedderwick comments, “These results derive
from our extensive portfolio of brands turning in a strong first
quarter performance, underpinned by our growing logistics and
manufacturing capability.”

He says, “Our ‘gorilla’ brands all performed exceptionally well with
most of them recording comparable year-on-year double-digit growth,
notwithstanding the sheer size of these individual businesses and
the fact that their growth comes off a huge base. He adds, “It was
not just our brands which talk to mainstream South Africa that
delivered stellar results, but also the likes of tashas at the
premium niche end of the spectrum, which produced astonishing
growth, turning in a 22% rise in sales versus the prior year.”

During the quarter 34 new restaurants were opened. Hedderwick
notes, “Of the 30 restaurants opened in South Africa, 18 are in new
emerging markets. We are especially pleased with our entry into
these markets where we were previously under-represented and where
our brands are viewed as aspirational. his penetration into new
emerging markets is part of a deliberate strategy to make our brands
available, accessible and affordable.”

“While a moratorium on new liquor licences had hampered the Gauteng
roll-out of the revamped Keg brand, the Group successfully launched
its flagship Keg & Thistle in Durban – the original home of the
brand; two further restaurants, the Keg & Goose in Krugersdorp and
the Keg & Copperfield in Lusaka, will open in June and July
respectively, providing encouraging evidence that our Keg brand is
gaining some momentum,” he says.
New restaurant openings across the brand portfolio will ramp up in
the second quarter of 2013, with 46 restaurants planned.

The Group also recently announced that it would be opening its first
Steers restaurant in Clapham, London, and Debonairs Pizza restaurant
in Mumbai, India.   Hedderwick says that while the Group’s primary
focus is on the African continent, where there is a strong business
case and obvious demand for their brands (such as Clapham and
Mumbai), international markets will be considered. “We’ve long
considered exporting Steers to the UK, fuelled by the constant
requests from expatriates living in London craving a taste of home.
Having researched the market we believe that the timing of this
launch is right, and that our flame-grilled offering will create as
much excitement and recognition in the UK as in South Africa.”

Hedderwick notes that in the current socio-economic environment the
food services industry continues to evolve.   He elaborates on the
key trends shaping the sector at present:

-   A shifting consumer profile (the black middle class has grown
    from 1.6 million people in 2004 to 4.2 million, and their
    disposable income has increased by 35%);

-   Value is ‘the new black’ (the competitive trading environment and
    general economic downturn has trained consumers to look for value
    – which they perceive as price, quality, relevance and
    convenience); and

-   Convenience matters (a lot). Consumers are no longer eating
    three traditional meals a day – these are fragmenting into
    nibbles and bites at non-traditional times – with snacks
    accounting for one in five eating occasions.  Accessibility and
    speed are paramount.

Hedderwick adds, “Particularly strong drivers of growth in the
industry are breakfast and coffee - with ‘all-day’ breakfasts
identified as a key future trend; while coffee is no longer seen as
a meal accompaniment, but is increasingly being purchased as a snack
meal.”

Expanding on the quarterly results, Hedderwick says, “Growth in our
other components of the business was also impressive. The Supply
Chain delivered a 20.8% increase in sales with the Logistics
division contributing  15.8% of that improvement  and   the
Manufacturing division recording growth of 34.6%, including the new
Famous Brands Coffee Company contribution (23.2% excluding the
coffee business).

Hedderwick states, “There is a range of opportunities which we plan
to capitalise on in the period ahead. Amongst those is to unlock
the potential of our new acquisitions including Turn ‘n Tender, The
Famous Brands Great Bakery Company (The Bread Basket’s specialist
bakery facility), Famous Brands Choice Meats Company and of course
growing the volumes and range out of our Coega Cheese company.”
“Additionally, we are enthusiastic about the potential to grow our
presence on the African continent. The rest of Africa is fast
becoming the playground for opportunistic investors and with more
than 12 years’ experience in the region, we believe our strategy to
deepen our presence in specifically targeted markets will continue
to serve us well,” says Hedderwick.

He concludes, “In the current doom-and-gloom environment, I am
encouraged by these results and believe they set the tone for the
Group’s performance for the balance of the current fiscal year.”
 


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#105 gamma

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Posted 18 June 2013 - 09:58 PM

Interesting 1 year comparison of the big 3 

Spur, Famous Brands and Taste

 

 

Attached File  Screen Shot 2013-06-18 at 9.56.05 PM.png   74.67KB   81 downloads


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#106 Saints

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Posted 06 June 2013 - 07:59 AM

Right you are Gamma, it is purely a psychological move to keep the small investors that got the share to where it is interested.


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#107 gamma

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Posted 05 June 2013 - 08:04 PM

Could you explain the logic behind that? I'm sure it makes sense I just can't see why.

 

1 share @ R100 making X % returns the same as 2 shares @ R50 making X %. Trading costs are based on trade value not share count, so they'd be seeing the same costs to buy/sell some Rand value of shares. Sorry, I just can't see why it would matter unless the share really was in the thousands of Rand area, so I'm missing something  :unsure:

 

Haha Ptomli..nicely picked up. You are right..it makes no difference..but at the same time it does..

It is purely psychological. Seems there are crazy investors out there that prefer buying a R10 share to a R100 share. 

Just adds to liquidity..always a good thing.


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#108 ptomli

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Posted 05 June 2013 - 05:34 PM

A share split would make the share more accessibly to private investors who want to cash in on the growth.

 

Could you explain the logic behind that? I'm sure it makes sense I just can't see why.

 

1 share @ R100 making X % returns the same as 2 shares @ R50 making X %. Trading costs are based on trade value not share count, so they'd be seeing the same costs to buy/sell some Rand value of shares. Sorry, I just can't see why it would matter unless the share really was in the thousands of Rand area, so I'm missing something  :unsure:


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#109 Saints

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Posted 05 June 2013 - 05:02 PM

Gamma I was thinking the exact same the other day that FBR should consider a share split. Though they cannot really complain about liquidity issues with the share as it is well traded with good volumes. A share split would make the share more accessibly to private investors who want to cash in on the growth.


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#110 seesider

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Posted 05 June 2013 - 01:00 PM

Working its way up to R100 while everything around it is in the red :D


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#111 gamma

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Posted 04 June 2013 - 07:31 PM

Took a look at a 2yr weekly and what's interesting is not that FBR is up 4 consecutive weeks but that it is on very good volume.

 

 

Attached File  FBR Jun13.PNG   32.58KB   45 downloads


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#112 gamma

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Posted 04 June 2013 - 03:44 PM

up another 2.5%

:huh:

 

pushing for that psychological R100 barrier.

 

A share split would be nice right about now Mr Hedderwick


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#113 gamma

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Posted 03 June 2013 - 07:02 PM

Solid performance today. up a couple cents in the face of a market capitulation.

actually a bit surprised it held up this well..


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#114 gamma

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Posted 28 May 2013 - 10:23 AM

This is a great share that offers something for both long term and short term investors. I still hold a long term view on this one despite being a shareholder for over 10 years. If these are the results during a 'subdued macro-economic climate' then imagine what thy will look like during better times!

 

I think they have a lot of opportunity going forward.

In SA, capitalising on the black middle class is an area for growth. Debonairs doing well in this segment.

Building out their infrastructure in the developing rural areas is another.

 

In Africa the sky is the limit. Currently they have a base in 15 countries and are developing their core brands.

 

India, Dubai, UK...who knows..bit experimental but if any of these come off then could be nice upside

Their plan is another 250 restaurants this year..


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#115 Saints

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Posted 28 May 2013 - 08:14 AM

This is a great share that offers something for both long term and short term investors. I still hold a long term view on this one despite being a shareholder for over 10 years. If these are the results during a 'subdued macro-economic climate' then imagine what thy will look like during better times!


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#116 gamma

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Posted 28 May 2013 - 12:34 AM

Hedderwick is a real class act. 

 

Love the fact they are modeling the business on SAB's approach

 

http://www.moneyweb....nges-its-recipe


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#117 gamma

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Posted 27 May 2013 - 05:48 PM

good interview offering great insight

 

http://www.abndigita...evin-Hedderwick


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#118 gamma

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Posted 27 May 2013 - 08:05 AM

Nice bump in the Divi

 

 

Revenue up 17% to R2 516 million
Headline earnings per share up 22% to 339 cents per share
Cash generated by operations up 21% to R482 million
Dividends per share up 25% to 250 cents per share

 

Financial results
The Group succeeded in surpassing its four-year vision to double the size of the business.


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#119 gamma

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Posted 25 May 2013 - 05:26 PM

Results will be posted on monday. Very strong close on Friday. Up >2% to R94 - at an ATH.

up 78% over 52 weeks. Current PE a bit rich at 31 but fwd PE back down to low 20's

Wouldn't be surprised to see some 'sell the news' activity on monday and then a slow push up to R100 over the next month

 

Sorry Burger King...the locals will show you how it's done  :D


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Do not try and bend the market. That's impossible. Instead... only try to realize the truth. Then you'll see, that it is not the market that bends, it is only yourself.

#120 Saints

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Posted 15 May 2013 - 05:47 PM

New highs again today building up for the results release on the 27th :)


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