Famous Brands expects earnings fall as Botswana impairment weighs

Famous Brands expects basic earnings per share to fall by 13% to 33% for the six months to 31 August 2026, mainly because of a R40.9 million goodwill impairment linked to its Botswana business.

In a trading statement issued on 15 October, the group forecast basic earnings of 157c to 205c a share. Headline earnings could range from 205c to 252c, compared with 236c a year earlier.

The impairment follows a decision to sell a 21% interest in Retail Group, reducing its holding from 51% to 30%. Completion is expected in the 2027 financial year, subject to conditions including regulatory approval. Famous Brands said it would retain master licence fees and a minority interest.

The company attributed pressure on profitability to higher fuel costs and interest rates. It expects to release interim results around 21 October. The forecasts have not been reviewed or reported on by its external auditors.

Famous Brands operates a restaurant franchise business alongside manufacturing, distribution and retail activities. Its business therefore extends beyond restaurants to the supply of food and licensed products.

According to its corporate website, the group began with the Steers brand and a limited supply chain in the early 1960s. It listed as Steers Holdings on the Johannesburg Stock Exchange in 1994. The company now describes operations across three continents, with franchise partners supported by its manufacturing facilities, logistics network and retail product range.

The distinction between the two earnings measures matters here: the projected basic earnings decline reflects the Botswana impairment, while the headline earnings range spans both a decline and an increase.