Famous Brands receives approval for secondary listing on A2X Markets

Image Source: Famous Brands

SOUTH AFRICA – Famous Brands, a branded food services business in South Africa has announced that its ordinary shares will be listed and traded on alternate exchange, A2X Markets on 30 November 2020.

The restaurant franchisor with a market capitalization of R4.4 billion (US$290 million), will retain its primary listing on the Johannesburg Stock Exchange (JSE) and its issued share capital will be unaffected by its secondary listing on A2X.

A2X is a licensed stock exchange authorised to provide a secondary listing venue for companies.

It is regulated by the Financial Sector Conduct Authority and Prudential Authority, South African Reserve Bank in South Africa in terms of the Financial Markets Act 19 of 2012.

“We look forward to be welcoming them on to our platform next week.”

A2X Markets CEO – Kevin Brady

Announcing the approval, A2X indicated that Famous Brands is joining other well-known companies on the bourse, bringing the number of its listed companies to 38 with a combined market capitalisation of more than R2.2 trillion (US$145 billion).

 “Famous Brands is home to many of South Africa’s favourite restaurants. The group have always given their consumers a variety of choice between restaurants and food types and we are delighted to now be bringing choice and also potential savings to Famous Brands’ shareholders too.

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“We look forward to be welcoming them on to our platform next week,” A2X CEO, Kevin Brady said.

Famous Brands’ half year revenue decline by 48%

Meanwhile, the owner of fast-food brands Steers and Debonairs has reported a 48% decline in revenue in the interim period for the six months ended August, to R2 billion (US$122m) from R3.86 billion (US$235m) registered in 2019.

This is a clear indication of the significant impact the stringent Covid-19-induced lockdown regulations had on the business.

Its operating loss before non-operational items came to R109.8 million (US$6.7m) down 129% compared to profit of R376.2 million (US$23m) in the prior comparable period.

The half year results of the company show a headline earning share loss of 240 cents.

Leading brands contributed R161 million (US$9.8m), down 58% while Signature brands’ revenue declined 74% to R25 million (US$1.5m).

The group’s vertically integrated business model is comprised of 24 restaurant brands, represented by 2 898 restaurants across South Africa (SA), the rest of Africa and the Middle East (AME), and the United Kingdom (UK).

Its brands portfolio is segmented into Leading brands and Signature brands, strategically positioned to appeal to a wide range of consumers across the income and demographic spectrum and across meal preferences and value propositions.

Leading brands contributed R161 million (US$9.8m), down 58% while Signature brands’ revenue declined 74% to R25 million (US$1.5m).

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