Former GBK owner Famous Brands warns on profits
The company stated that the reported BEPS is expected to be between 225 cents and 174 cents per share, representing a decrease of between 13% and 33%, compared to the prior comparable period
The board of directors of Famous Brands has issued a profit warning stating that its basic earnings per share (BEPS) may be 20% lower than expected for the six months ended 31 August 2023.
The company stated that the reported BEPS is expected to be between 225 cents and 174 cents per share, representing a decrease of between 13% and 33%, compared to the prior comparable period.
It attributed the reduction in BEPS to the liquidation of Gourmet Burger Kitchen Limited (GBK) in August 2022.
It said that excluding the GBK liquidation dividend, the reported BEPS would have been between 180 cents and 217 cents per share for August 2022.
It also added that the business has continued to improve its revenue performance, however “the high levels of sustained load shedding, related cost pressures and a challenging economic environment has impacted the profitability of the group”.