| Shareholders of Spur Corporation are advised that the group's Annual Financial Statements and a summary thereof ("Summary Financial Statements"), were published on the websites of the JSE Limited and the group, today, 21 August 2024. |
| KEY FEATURES: |
- Franchised restaurant turnovers up 11.5% to R10.62 billion
- Revenue up 14.1% to R3.47 billion
- Earnings per share up 10.7% to 287.92 cents
- Diluted earnings per share up 8.7% to 281.31 cents
- Diluted headline earnings per share up 9.4% to 284.34 cents
- Dividend per share increased by 10.9% to 213 cents (2023: 192 cents)
- Profit before income tax up 7.3% to R341.7 million
- Headline earnings per share up 11.4% to 291.02 cents
- Unrestricted cash and cash equivalents at 30 June 2024 is R365.7 million
- Return on equity 29.6%
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| TRADING PERFORMANCE: |
| At 30 June 2024, the group traded out of 701 restaurants in 15 countries (2023: 639). In South Africa, 27 new restaurants were opened during the period and 9 closed. 11 new restaurants opened internationally and 4 closed. 37 restaurants were added to the group's restaurant profile with the acquisition of a 60% share in the Doppio Collection, as previously reported, effective from 1 December 2023. Trading patterns have been volatile over the past year owing to pressure on consumer spending in the difficult macroeconomic climate. |
| The first quarter of the reporting period delivered a strong performance off a high base. While the second quarter was marked by slower trading patterns, restaurant turnovers were boosted by robust trading in December 2023. The second half of the financial year continued with slower trading volumes. A positive upturn in trade was experienced in June during the mid-year school holidays. Despite the mounting pressure on disposable income, the group continued to attract customers into restaurants with its distinct and differentiated value proposition. Significant brand innovation initiatives permeated across the group which included the rebranding of the 57-year-old Spur Steak Ranches brand that has created a new interest among both consumers and franchisees. In addition, the increased marketing investment in a Family Club advertising campaign attracted 1.1 million new loyalty club members resulting in a record high 3.1 million active Family Club members in the financial year. The Spur brand's voucher redemption rate of 78% is evidence that consumers are seeking value and rewards for their strained disposable income. Customer count numbers remain unchanged on the previous year but pleasingly average-spend-per-head grew above menu price inflation. |
| FINANCIAL PERFORMANCE: |
| The trading performance led to a continued strong growth in both group revenue and profit. The revenue growth was supported by improved franchised restaurant turnovers and increased sales from the manufacturing and distribution division which grew by 9.9% (8.7% excluding Doppio Collection). Growth in sales in the retail company stores was a pleasing 119.5% positively impacted by the contribution from the Doppio Collection restaurants. Excluding these restaurants, revenue from retail company stores reports a decline of 4.7% as a result of two less stores trading in F2024. On a like-for-like basis, The Hussar Grill retail company stores report a 5.1% growth in revenue. |
| Group profit before income tax increased by 7.3% to R341.7 million (F2023: R318.4 million). Group headline earnings increased by 10.8% to R236.1 million (F2023: R213.1 million), with diluted headline earnings per share 9.4% higher at 284.34 cents (F2023: 260.01 cents). |
| The company's unrestricted cash balance was R365.7 million at 30 June 2024 (31 December 2023: R288.0 million). The cash generation and the allocation of the group's capital remains a key focus area of the executive directors and the board. |
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Spur Corporation Limited |
