The full year dividend was increased by 40.4%, to 299 cents per share, as the directors showed their confidence in the group’s cash generating ability and commitment to return surplus cash to shareholders.

Total franchise restaurant sales grew by 8.3% to R11.5 billion.

The competitive trading performance of the brands resulted in continued strong growth in revenue and profit. Group revenue increased by 11.2% to R3.9 billion, driven by a significant increase in sales in the retail company stores which grew by 46.3%, following the addition of 11 company-owned restaurants from the Doppio Collection acquisition in the prior year. Doppio Collection has been successfully integrated into the group’s operations and accounts for 42 of the 80 speciality restaurants.

Group profit before tax increased by 17.5% to R402 million, with the South African operations growing by 18.0% to R376 million and the international business by 10.0% to R25 million.

Cash generated from operations was R133 million higher at R463 million, with unrestricted cash on hand of R477 million at year end. The group’s return on equity increased to a robust 31.7%.

Group CEO Val Nichas said Spur Corporation’s proven capability in casual dining hospitality remains its strategic competitive advantage as the battle for market share intensifies in the highly competitive casual dining restaurant sector.

“In the current environment of constrained consumer spending we supported sales through value-added campaigns, brand loyalty programmes, menu innovation and offering customer experiences that differentiate. Consumers crave value, care and memorable experiences that foster social connections,” she said.

The iconic Spur brand increased restaurant sales by 4.8%, accounting for 64% of total South African sales. Panarottis increased restaurant sales by 13.6% and RocoMamas by 5.0%, with these brands representing 10% and 9% of local sales respectively. The speciality brand portfolio increased sales by 36.2%, bolstered by the inclusion of the Doppio Collection brands.

International franchised restaurant sales increased by 7.8%. Mauritius represents 23% of international sales with Spur leading the brand sales contribution at 40%, followed by Panarottis at 34% and RocoMamas at 26%.

Nichas said the response from both franchisees and customers to the refreshed brand identities and restaurant designs has been overwhelmingly positive. To date, 51 Spur restaurants have been upgraded to the new brand identity and store concept, while 55% of Panarottis outlets now feature the new store design. A refreshed format has also been introduced for John Dory’s and enhanced designs are being implemented for The Hussar Grill and Doppio Zero.

“Our franchisees have demonstrated their commitment by investing over R200 million over the past year in new restaurants and revamps,” she said.

The group expanded its local and international restaurant presence to 724 outlets in 14 countries. In South Africa, 31 restaurants were opened which included four Doppio Zero, one Piza é Vino and one Modern Tailors restaurant. Fifteen restaurants were closed.

Fifteen new restaurants were opened in the rest of Africa to bring the international store network to 105. The new Spur branding was incorporated into the newly-built Spur restaurants in Botswana and Zimbabwe, and a restaurant in Namibia was revamped with the updated brand identity. Eight restaurants were closed, mainly as a result of the group exiting Saudi Arabia and India, due to the underperformance of stores in these countries.

The six virtual kitchen (VK) brands are now available from 402 restaurants and have consistently maintained their share of the online ordering channel. Pizza Pug, Ribshack RocoFellas and Just Wingz remain the leading performers. Spice Sisters, a new VK brand offering a curry menu range, is set to launch later this month.

The group continues to capitalise on consumer demand for convenience, with takeaways accounting for 13% of total local restaurant sales. Collect orders comprise more than 50% of takeaway sales, with the balance delivered by Mr D and Uber Eats.

On the outlook for the new financial year, Nichas said lower inflation and interest rates are offering some relief to debt-burdened consumers while the stable electricity supply is supporting consumer and business confidence. The country’s economic growth is also forecast to accelerate in the year ahead.

“These factors are unlikely to translate into improved consumer spending in the short to medium term and we will continue our drive to gain market share.

“We are positive on the outlook for the sector and the group’s longer-term prospects. Our portfolio of 10 well-established, distinctive restaurant brands, together with our virtual kitchen brands, position the group to grow market share across categories, regions and countries.”

The group will accelerate its store expansion programme with the planned opening of 42 new restaurants in South Africa and 14 internationally in the year ahead.

“Our brands have not yet reached saturation in South Africa or beyond. We will continue expanding our presence on the African continent and are optimistic about the growth potential as casual dining continues to gain appeal. We are leveraging value from the Doppio Zero brand which is also expanding into the rest of Africa with a restaurant opening planned in Zimbabwe later this year,” said Nichas.

Ends

Issued by Tier 1 Investor Relations on behalf of Spur Corporation

For further information kindly contact

Val Nichas, Spur Corporation 021 555-5100 valentinen@spurcorp.com

Graeme Lillie, Tier 1 Investor Relations 082 468 1507 graeme@tier1ir.co.za

Media requests for images kindly contact

Moshe Apleni, Spur Corporation moshea@spur.co.za