Grand Parade Investments (GPI) on Tuesday reported an increase of 120 percent in headline earnings per share from continuing operations for the year to the end of June, as the group continued its move away from holding controlling stakes in gaming and leisure businesses and into food investments.
“The improved results indicate that the early stage food investments are moving towards profitability, having reached a level of maturity where the scale of the businesses and resultant synergies allow for better efficiencies,” the company that brought the Burger King franchise to South Africa in 2013 said in a statement.
During the year under review, GPI sold a further 25 percent of GPI Slots to Sun International for R270.3 million and a 10 percent holding of SunWest and Worcester Casino to Tsogo Sun for R675 million.
Continuing to expand its food business investments, the group acquired the South African master franchise licences for two leading international quick service restaurant brands, Dunkin’ Donuts and Baskin-Robbins, for a combined cost of R12.3 million.
Dunkin’ Donuts is an international coffee and bakery chain with more than 11 500 restaurants in 40 countries, and Baskin-Robbins is the world’s largest chain of speciality ice-cream stores with 7 600 stores in 50 countries.
The master franchise licences both give GPI the right of first refusal to enter Namibia, Botswana, Zambia and Mauritius.
The group also acquired control of Grand Foods Meat Plant, the facility that produces all of Burger King’s beef burger patties. An investment of R35.8 million in this business increased the group’s effective holding to 96.9 percent.
A statement from GPI added that the group was optimistic about the upcoming financial year “despite the anticipated strong headwinds caused by a sustained weak local economy”.
“The group’s focus during the next financial year will be on delivering on its strategy to grow its food business, which includes the continued improvement in the profitability of Burger King, launching both Dunkin’ Donuts and Baskin-Robbins and unlocking the synergies between the various food investments.”
In addition, the group said it would continue investing in food businesses via premium restaurant brands and supply-chain services and products to support the restaurant brands.
– African News Agency (ANA)