Spur Corporation is set to deliver beefed-up annual results despite high food inflation.
The owner of Panarottis, John Dory’s, and RocoMamas, in a trading update for the year ended June 30, 2022 said it expected headline earnings per share (Heps) to increase between 27.5 percent and 32.5 percent.
Although economic conditions remained challenging in the face of higher inflation and severe pressure on consumer disposable income, the group said its business model continued to demonstrate its resilience.
“The group achieved a strong trading performance for the year, following a recovery from the impact of the global Covid-19 pandemic in the past two years,” Spur said.
Franchised restaurant sales for the reported period were 28.2 percent higher than the prior financial year and were pleasingly slightly ahead of the 2019 financial year pre-pandemic levels, it said.
The group said following the relaxation of trading restrictions, trading conditions improved from August 2021, with franchised restaurant sales in the first half of the 2022 financial year growing by 28.3 percent over the prior comparable period to December 2020.
"This strong growth trend continued into the second half of the 2022 financial year, with a 28.5 percent increase in local restaurant sales and a 24.7 percent increase in international restaurant sales over the second half of the 2021 financial year," Spur said.
The Spur restaurant brand had a 30 percent increase in sales for the year, while half-year sales to June 2022 rose by 28 percent.
Panarottis’ sales saw a 31 percent increase for the year and 30 percent for the interim period, while John Dory's annual sale rose by 27 percent and its half-year sales grew by 23 percent.
RocoMamas sales grew by 25 percent for the year, and 22 percent for the half-year.
“The improved trading performance together with a focus on expanding margins, as well as the reduced level of financial support required by franchisees post pandemic, led to a strong recovery in both group revenue and profit,” the group said.
Spur said the close collaboration and partnership with the franchise network enabled several ongoing strategic initiatives to be implemented during the year, including supply chain improvements.
The group's results for the year ended June 30, 2022 are expected to be released on August 19.
Meanwhile, as part of its expansion plans, Spur Corporation opened its first drive-thru last month, situated in Little Falls, Johannesburg. The group would open another soon in Queenswood, Pretoria.
Spur’s strategy has been focused on value and convenience, which includes click and collect, deliveries and takeaways.
BUSINESS REPORT