JSE-listed owner of Steers, Debonairs, and Wimpy takes a R40.9 million hit in Botswana

Famous Brands expects its earnings for the first half of the 2027 financial year to decline by as much as 33%.

This is mainly due to a R40.9 million goodwill impairment relating to the company’s operations in Botswana.

Famous Brands is partially disposing of its stake in these operations, with plans to reduce its shareholding from 51% to 30%.

This was revealed in a trading statement released on Thursday, 15 October, wherein Famous Brands outlined its earnings expectations for the six months through August 2026.

Famous Brands is the largest restaurant franchisor in Africa, with well-known brands such as Steers, Debonairs Pizza, Wimpy, and Milky Lane in its portfolio.

The group reported that its revenue performance over the six-month period remained resilient, supported mainly by improvements across its value chain. 

“However, elevated fuel prices arising from the conflict in the Middle East, together with higher interest rates, created a challenging economic environment and adversely affected group profitability,” it said.

On top of that, Famous Brands recognised a R40.9 million goodwill impairment relating to Retail Group in Botswana.

Famous Brands acquired a 51% stake in this business in 2015. At the time, it held 19 company-owned restaurants and managed nine franchised restaurants across Botswana.

Now, Famous Brands has decided to reduce its stake from 51% to 30%, which led to the R40.9 million impairment.

The company explained that Retail Group underperformed against its expectations, largely due to difficult economic conditions in Botswana.

However, Famous Brands said it still sees long-term potential in that market, where its brands are well established and relevant to consumers, which is why it will retain a 30% stake.

“The disposal will reduce the group’s direct exposure to operating losses while maintaining ongoing economic participation in the Botswana market,” it said.

The impairment will impact Famous Brands’ earnings for the six-month period.

The group expects its earnings per share to decline by between 13% and 33% year-on-year, with headline earnings changing by between 7% and -13%.

Famous Brands expects to publish its results for the six months through August 2026 on Wednesday, 21 October.