Famous Brands feels the squeeze of low consumer spending
In a statement late on Monday, after the market close, the company said headline earnings per share were expected to decline by up to 63% to R1.87 in the six months to August, from R4.11 a year ago.
Higher finance costs and recently acquired UK-based Gourmet Burger Kitchen were the main drag in the overall performance. Finance costs rose to R138m, from R8m, while Gourmet Burger Kitchen recorded a loss 872,000. But the company said it was "fixing" the UK-business, which, it said would return to profit in the next financial year.
Famous Brands said profit before interest and tax in the main South African business was expected to record "satisfactory improvement". Famous Brands shares retraced slightly to a loss of 11.7% to R104.37 in mid-morning trade on the JSE, valuing the company at R10.4bn.
Source: BDpro