Spur Corporation Limited announced its interim financial results for the six months ending December 31, 2023. Despite facing tough economic conditions, the company showcased robust growth across various financial metrics:
| Metric | Growth |
|---|---|
| Franchised restaurant turnovers | Up 10.4% to R5.386 billion |
| Earnings per share | Increased by 16.3% to 159.53 cents |
| Diluted headline earnings per share | Rose by 14.8% to 156.85 cents |
| Revenue | Surged by 15.2% to R1.766 billion |
| Interim dividend per share | 95 cents (compared to 82 cents in 2023) |
| Profit before income tax | Increased by 13.9% to R191.8 million |
| Headline earnings | Grew by 15.4% to R129.5 million |
Trading Performance
Despite challenging macroeconomic conditions, Spur Corporation managed to maintain its customer base and attract foot traffic to its restaurants. The company’s unique value proposition resonated with consumers, evident in a Spur Family Club loyalty voucher redemption rate of 76%.
The first quarter of the reporting period witnessed strong performance, driven by increased customer foot traffic. However, the second quarter experienced slower trading patterns. Nevertheless, strong trading in December 2023 buoyed restaurant turnovers.
Notably, high tourism numbers in the Western Cape contributed to double-digit growth during the festive season. Additionally, the company’s brands performed well in KwaZulu-Natal in December 2023.
Financial Performance
Spur Corporation’s revenue growth was supported by higher sales in retail company stores and increased sales from the manufacturing and distribution division. The company also experienced improved franchised restaurant turnovers.
Group profit before income tax increased by 13.9% to R191.8 million, with headline earnings climbing by 15.4% to R129.5 million. Diluted headline earnings per share saw a significant increase of 14.8%.
Payment of Cash Dividend
The company declared an interim gross cash dividend of R86.447 million for the six months ended December 31, 2023, equating to 95.0 cents per share. Shareholders not exempt from dividend withholding tax will receive a net dividend of 76.0 cents per share.
The relevant dates for the dividend are as follows:
Outlook
Despite forecasts of improved GDP growth in South Africa, Spur Corporation anticipates continued challenging trading conditions. However, with a portfolio of ten distinctive restaurant brands, the company remains well-positioned to gain market share across various categories, regions, and countries.
The company aims to open 41 new restaurants in South Africa and 12 internationally by the end of the financial year.
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