Spur bucks sector trend to post 50% increase in profit
by Staff Writer,
2016-02-25 10:50:01.0
SPUR bucked the downward trend in the consumer and retail sector with its half-year profits climbing more than 50%.
"The strength of the group’s brands and loyal customer base proved crucial as trading conditions became increasingly difficult in the latter stages of the 2015 calendar year. The RocoMamas chain exceeded expectations since being acquired by the group in March 2015. The trendy brand image and quality product offering of handmade ‘smash-style’ burgers, ribs and wings have resonated with customers and franchisees alike," the company said.
In the six months to December 31 2015, profit surged 63.7% to R91.8m while revenue fell by 5.4% to R386.6m compared with the year-earlier period.
Diluted headline earnings per share (HEPS) jumped 66.7% to 101.96c and the company declared an interim gross cash dividend of 67c per share.
Spur’s brands include Panarottis Pizza Pasta, John Dory’s, The Hussar Grill and Captain DoRegos.
Spur said consumer spending would come under further pressure in the months ahead in the face of slowing economic growth, negative consumer sentiment and sociopolitical instability.
"In this environment, the group will remain competitive through aggressive, value-focused marketing campaigns to attract cash-strapped consumers".
The group plans to open 31 restaurants across its brands in SA in the remainder of the financial year ending in June 2016, including 17 RocoMamas restaurants.
Six new franchised outlets will be opened internationally, including additional restaurants in Kenya, Nigeria, Zimbabwe and Australia, and a first outlet in Ethiopia.
Shares closed at R29.39 on the JSE on Wednesday, valuing the company at about R3.2bn.
Picture: DAILY DISPATCH
SPUR bucked the downward trend in the consumer and retail sector with its half-year profits climbing more than 50%.
"The strength of the group’s brands and loyal customer base proved crucial as trading conditions became increasingly difficult in the latter stages of the 2015 calendar year. The RocoMamas chain exceeded expectations since being acquired by the group in March 2015. The trendy brand image and quality product offering of handmade ‘smash-style’ burgers, ribs and wings have resonated with customers and franchisees alike," the company said.
In the six months to December 31 2015, profit surged 63.7% to R91.8m while revenue fell by 5.4% to R386.6m compared with the year-earlier period.
Diluted headline earnings per share (HEPS) jumped 66.7% to 101.96c and the company declared an interim gross cash dividend of 67c per share.
Spur’s brands include Panarottis Pizza Pasta, John Dory’s, The Hussar Grill and Captain DoRegos.
Spur said consumer spending would come under further pressure in the months ahead in the face of slowing economic growth, negative consumer sentiment and sociopolitical instability.
"In this environment, the group will remain competitive through aggressive, value-focused marketing campaigns to attract cash-strapped consumers".
The group plans to open 31 restaurants across its brands in SA in the remainder of the financial year ending in June 2016, including 17 RocoMamas restaurants.
Six new franchised outlets will be opened internationally, including additional restaurants in Kenya, Nigeria, Zimbabwe and Australia, and a first outlet in Ethiopia.
Shares closed at R29.39 on the JSE on Wednesday, valuing the company at about R3.2bn.
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