SOUTH AFRICA – Famous Brands has delivered an 18% rise in headline earnings per share to (HEPS) 212c in the six months to August, boosted mainly by its logistics and manufacturing operations and improved efficiencies.

The fast food group said on Monday that revenue was up 14% to R1.57bn from the year-earlier period, with operating profit up 19% to R303m.

The company said while the front-end franchised operation delivered a satisfactory performance — reflecting reduced consumer spend across certain mainstream brands — the back-end logistics and manufacturing businesses made a significant contribution to the group’s overall results.

To this end, operating profit in the logistics segment was up 22% to R38.2m while operating profit in the manufacturing space lifted 40% to R69.8m.

Operating profit in the franchise division was up 10% to R183m, while system-wide sales across the total franchise network grew 9.6% and like-on-like sales increased 3.8%. The group opened 110 restaurants in the review period.

The restaurant franchise group‚ which owns Steers‚ Wimpy and Debonairs Pizza‚ declared an interim dividend of 155c per share — up 19% from last year.

“As reflected in these results, the integrated supply chain plays a vital role in underpinning the success of the brands and profitability of the business as a whole,” Famous Brands said.

“Ongoing improvement in efficiencies in both the logistics and manufacturing operations will ensure that the back-end of the business continues to grow its significant contribution to the group’s performance.”

October 29, 2014; http://www.bdlive.co.za/business/retail/2014/10/27/manufacturing-business-lifts-famous-brands