130 replies to this topic

[Hooligan]

Still have this in my LTP - looks like its consolidating, its done nothing for the year.

 

Any view on what Mr Biggs will add from a performance perspective?

[Saints]

The rest of Africa is the one to watch for here as a huge middle class evolves and as some African countries now enjoy better growth prospects than our own FBR can only get stronger. I was interested to read that growth in India is expected to slow for FBR, I had high hopes that India's huge population would drive volumes.

A great set of results and a great dividend to add to the cash reserves for the new listings coming to the market.

[Saints]

The rest of Africa is the one to watch for here as a huge middle class evolves and as some African countries now enjoy better growth prospects than our own FBR can only get stronger. I was interested to read that growth in India is expected to slow for FBR, I had high hopes that India's huge population would drive volumes.

A great set of results and a great dividend to add to the cash reserves for the new listings coming to the market.

[gamma]

http://www.moneyweb....hoes-of-bidvest

 

inklings of things to come. we only getting started...

[gamma]

Audited results for the year ended 28 February 2014

Financial highlights
Revenue up 12% to R2.83 billion
Operating margin at record high of 20.0% up from 18.5%
Profit before tax up 23% to R567 million
Headline earnings per share up 20% to 406 cents
Dividend up 20% to 300 cents per share

Market capitalisation exceeds milestone R10 billion

 

GROUP PERFORMANCE
Famous Brands’ stated goal is to become Africa’s first choice integrated branded food services franchisor by 2015
by building capability across our brands, logistics and manufacturing operations, providing a holistic solution
to the Group’s investment partners and consumers. It is therefore satisfying to report on a year which featured
not only strong results but also substantial progress made on the programmes which will achieve this goal and
drive the Group’s future growth trajectory.

 

Pushing that operating margin up by 7.5% relative to last year is why I rate FBR's management so highly. They growing the company on the top end and leveraging that brilliantly. SAB through and through. 

 

The other interesting point in the report is that the genius of this business model is the way they are able to control their franchisee costs by allowing margin compression on the manufacturing side. This allows them to bubble wrap their franchisees in a way that competitors will struggle to do over the long term, which ultimately will allow them to take more share and drive more top line growth. 

[gamma]

Audited results for the year ended 28 February 2014

Financial highlights
Revenue up 12% to R2.83 billion
Operating margin at record high of 20.0% up from 18.5%
Profit before tax up 23% to R567 million
Headline earnings per share up 20% to 406 cents
Dividend up 20% to 300 cents per share

Market capitalisation exceeds milestone R10 billion

 

GROUP PERFORMANCE
Famous Brands’ stated goal is to become Africa’s first choice integrated branded food services franchisor by 2015
by building capability across our brands, logistics and manufacturing operations, providing a holistic solution
to the Group’s investment partners and consumers. It is therefore satisfying to report on a year which featured
not only strong results but also substantial progress made on the programmes which will achieve this goal and
drive the Group’s future growth trajectory.

[gamma]

we can expect a decent dividend as well. Handy cash to have to consider some of the new listings of late

 

Yes, I'm expecting a div around 168-176c

up 18-25%.

[Saints]

we can expect a decent dividend as well. Handy cash to have to consider some of the new listings of late

 

[gamma]

Nice I ran a CFD long from 100.42 the other day in anticipation of a good update.

Looking to close at 111 later this week to quickly double that money.

 

Also have this sitting pretty in my LTP...no intention of selling.

 

 

I'm considering selling...

in about 10 years time

[Hooligan]

Nice I ran a CFD long from 100.42 the other day in anticipation of a good update.

Looking to close at 111 later this week to quickly double that money.

 

Also have this sitting pretty in my LTP...no intention of selling.

[Sugafoot]

The Group expects to report headline earnings per share and earnings per share of between 402 cents per share and 410 cents per share. This is an improvement on the prior year comparable HEPS and EPS of between 19% and 21%.

The Group also expects to report diluted HEPS and diluted EPS of between 401 cents per share and 409 cents per share, an improvement of between 20% and 22%.

[gamma]

Expecting a trading statement in the next week or two. Revs should be up nicely with Mr Biggs included.

[Saints]

This share has been a free-fall for sometime now despite the rest of the market falling and then staging a recovery. I understand it to be over-valued on a high PE but resistant levels have to kick in soon to halt the sell off and keep the price above above R90.

[brendonfiddes]

Relative Valuation calculates that the share is >40% overvalued (http://www.relativev....co.za/fbr.html)

I think it's quite risky getting in at these levels

[gamma]

If you look at Taste Holdings, no growth in the share price over 2013 compared to FBR that took off like a rocket. The high PE (29) still concerns me but is apparent that investors are pricing in the earnings over the later half of last year and not too worried about the PE.

 

I was expecting this share to remain in the nineties for the duration of this year based upon the high PE and that earnings would catch up and bring the PE down. Too my surprise that is not true and the price is still going up on big volumes. A little time back I would have expected a share split to make this share for liquid but again based on the volumes there is no need.

 

 

Saints, I agree with you generally but perhaps the market is pricing in the first Mr Biggs earnings addition. Having said that I personally don't expect it to be too much of a major factor yet. Cant be more than 10% of current earnings.

That is why I'm hendging my long here. Not quite sure what is pushing the price up. Could be institutional positioning.

[Saints]

If you look at Taste Holdings, no growth in the share price over 2013 compared to FBR that took off like a rocket. The high PE (29) still concerns me but is apparent that investors are pricing in the earnings over the later half of last year and not too worried about the PE.

 

I was expecting this share to remain in the nineties for the duration of this year based upon the high PE and that earnings would catch up and bring the PE down. Too my surprise that is not true and the price is still going up on big volumes. A little time back I would have expected a share split to make this share for liquid but again based on the volumes there is no need.

[gamma]

FBR on a bit of a tear. woke up after being stuck in the nervous nineties.

doubling up my short hedge

[Goliath]

" Famous Brands has doubled in size in the past four years, breaking a self-imposed earnings target of R450m profit at the full year in February. The next target, discussed internally, is R1bn PBT by February 2018. It’s some target, but Hedderwick has no doubt about the group’s ability to achieve it" (Moneyweb)

 

Goliath, of all Kevin Hedderwicks' comments this to me was the most interesting. Are we to see another doubling in size over the next 5 years - R200 share price? 

I think you mean gamma Saints!

 

In regards to your view, the way this one is steam rolling forward I wouldn't be surprized..

[Saints]

" Famous Brands has doubled in size in the past four years, breaking a self-imposed earnings target of R450m profit at the full year in February. The next target, discussed internally, is R1bn PBT by February 2018. It’s some target, but Hedderwick has no doubt about the group’s ability to achieve it" (Moneyweb)

 

Goliath, of all Kevin Hedderwicks' comments this to me was the most interesting. Are we to see another doubling in size over the next 5 years - R200 share price? 

[gamma]

My second favourite company on the JSE firing on all cylinders. Haven't heard Hedderwick this optimistic in some time.

 

http://www.moneyweb....ebonairs-gearin