Spur Corporation has reported a notable increase in profits and retail sales, attributed largely to its acquisition of a majority stake in the Doppio Collection.
For the fiscal year ending June 30, 2024, Spur disclosed that it closed 71 restaurants across 15 countries, compared to 639 in 2023. During this period, Spur launched 27 new restaurants, with nine closures. Internationally, 11 new outlets opened, and four were shuttered. Additionally, the acquisition of a 60% stake in the Doppio Collection on December 1, 2023, expanded the group’s portfolio by 37 restaurants.
Despite challenging economic conditions, Spur plans to open 47 new restaurants in South Africa and 13 abroad in the 2025 financial year.
“Trading patterns have fluctuated due to pressures on consumer spending in a challenging macroeconomic environment,” noted the company. “The first quarter showed strong performance from a high base, but the second quarter experienced slower trading. December 2023 saw a boost in restaurant turnover, and June saw a positive trade upturn during the school holidays.”
The group successfully attracted customers amid economic pressures, achieving a record 3.1 million active Family Club members. The Spur brand’s voucher redemption rate of 78% highlights consumer demand for value and rewards, even as average spend per head grew beyond menu price inflation.
Revenue growth was driven by improved franchised restaurant turnover and a 9.9% increase in the manufacturing and distribution division, though excluding Doppio Collection, growth was 8.7%. Retail company store growth surged by 119.5%, while revenue from these stores declined by 4.7% when Doppio Collection is excluded due to two fewer stores in FY2024.
Profit before income tax increased by 7.3% to R341.7 million, and headline earnings rose by 10.8% to R236.1 million. The dividend per share was boosted by 10.9% to 213 cents. The company’s unrestricted cash balance stood at R365.7 million as of June 30, 2024.
Key financial metrics for the period are as follows:
Franchised restaurant turnover 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 up 10.9% to 213 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 of R365.7 million
Return on equity of 29.6%
Looking ahead, while South Africa’s economic growth is expected to accelerate, immediate trading conditions may not improve. Spur Corporation remains well-positioned with its diverse portfolio of ten restaurant brands to capture market share across various sectors and regions. The group’s expansion plans for 2025 include 47 new South African locations and 13 internationally. #SpurCorporation #DoppioCollection #FranchiseGrowth #RestaurantIndustry #BusinessExpansion #RetailSales #FranchiseSuccess #Acquisition #ProfitIncrease #FinancialResults #RestaurantFranchise #BusinessStrategy #EconomicImpact #BrandGrowth #FranchiseOpportunities
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