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SPUR CORPORATION LIMITED - Sales update for the six months ended 31 December 2018

Release Date: 30/01/2019 14:00
Code(s): SUR     PDF:  
 
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Sales update for the six months ended 31 December 2018

Spur Corporation Limited
(Incorporated in the Republic of South Africa)
(Registration number 1998/000828/06)
Share code: SUR
ISIN: ZAE 000022653
(“Spur Corporation” or “the group”)


SALES UPDATE FOR THE SIX MONTHS ENDED 31 DECEMBER 2018

Franchised restaurant sales for the group increased by 6.5% to R3.9 billion in the
six months to December 2018 (“the period”).

In South Africa, franchised restaurant sales increased by 5.7%. Sales from
international restaurants increased by 12.7% in Rand terms and by 12.1% on a
constant exchange rate basis.

Sales information included in this announcement excludes the Captain DoRegos
chain which was sold with effect from 1 March 2018.

 Franchised restaurant sales for the six months ended 31 December 2018
                                        Total restaurant Existing
                                        sales             restaurant sales
                                        (% change)        (% change)
 Spur Steak Ranches                     6.1               5.1
 Pizza and Pasta (Panarottis and        (1.5)             (3.2)
 Casa Bella)
 John Dory’s Fish Grill Sushi           (0.8)             (5.4)
 The Hussar Grill                       13.8              8.7
 RocoMamas                              6.0               (6.7)
 Total South African operations         5.7               2.3
 Total international operations         12.7              (5.8)
 Total group                            6.5               1.4

Locally, 25 outlets were opened and 6 closed during the period, while 14
restaurants were opened internationally. In addition, the group acquired the Nikos
Coalgrill Greek chain, which comprised six restaurants at the effective date of 1
August 2018, and opened two further outlets subsequently.

At 31 December 2018, the group’s restaurant base totalled 616 (June 2018: 575),
including 76 (June 2018: 62) operating outside of South Africa.

Chief executive, Pierre van Tonder, said: “Local franchised restaurant sales
increased by 11.3% in the first quarter to September 2018, supported by the
continued recovery in the Spur Steak Ranches brand and a strong performance in
The Hussar Grill, while sales growth in the second quarter slowed to 1.2%. While
the second quarter performance was disappointing, it is generally consistent with
sales trends in the local retail sector. The South African consumer is taking
significant strain due to the sombre state of the economy, although the
performance of The Hussar Grill indicates that higher-income consumers continue
to be more resilient to the weakening economy.”

Van Tonder noted that sales from existing restaurants in the RocoMamas chain
reflect a period of consolidation following the unprecedented increase in restaurant
numbers since acquisition in March 2015. He added that restaurant turnover for
the Panarottis chain was impacted by aggressive discounting by competitors in the
takeaway pizza market.

“While restaurant trading conditions have deteriorated in Australia and New
Zealand, Africa and Mauritius traded well. In particular, 7 new Panarottis
restaurants were opened in Zambia, increasing the number of restaurants in that
country to 12. The first The Hussar Grill was opened in Saudi Arabia during the
period, while the group’s first restaurant, a RocoMamas, was opened in India.”

The financial information in this sales update has not been reviewed or reported
on by the group’s independent auditor. Spur Corporation’s interim results for the
six months ended 31 December 2018 will be released on SENS on 28 February
2019.


Cape Town
30 January 2019


Sponsor
Sasfin Capital
A division of Sasfin Bank Limited

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