How COVID-19 weighed on Famous Brands

Famous Brands, a well-known player in the South African food industry, has been navigating the challenging landscape brought on by the COVID-19 pandemic. In a recent interview with CNBC Africa, CEO Darren Hele shared insights into the company's financial performance and future outlook. Despite facing setbacks due to the global health crisis, Hele remains cautiously optimistic about the brand's trajectory post-COVID. As the country gradually eases restrictions and reopens its economy, Famous Brands has been observing a positive trend in its numbers since the end of August. The CEO noted that while there has been improvement compared to earlier in the year, the company is still not back to pre-pandemic levels. Hele anticipates a slow journey to full recovery, projecting that the business may reach anywhere between 80 to 100% of previous year's levels by the end of the financial year in February. One of the major challenges Famous Brands is currently facing is the troubled state of Gourmet Berger Kitchen, which has been placed under administration. Hele revealed that the company is not expecting any returns from this investment, highlighting the complex nature of the situation. Despite the uncertainties surrounding the future of Gourmet Berger Kitchen, Famous Brands is focused on restoring value to its shareholders. Hele emphasized that the restoration process has already commenced, and the company is committed to transparent communication with investors. The CEO also addressed the impact of the pandemic on Famous Brands' operations, acknowledging the need for agility and adaptability in the face of market disruptions. Hele emphasized the importance of closely monitoring consumer behavior and implementing strategic changes to navigate the evolving landscape. While the pandemic has undoubtedly presented challenges, Famous Brands remains resilient and proactive in planning for the future. Looking ahead, Famous Brands has outlined a three-year plan that involves expanding its leading brands, divesting from non-core businesses, and optimizing capital allocation. Hele reassured that the company is mindful of potential job implications and is working closely with stakeholders to mitigate any negative impacts. The focus will be on driving growth in key segments of the business while streamlining operations to enhance efficiency. In conclusion, Famous Brands is charting a course for recovery and reconstruction post-COVID. With a strategic plan in place and a commitment to adaptability, the company is poised to navigate the uncertainties of the current market environment. While challenges remain, Famous Brands is focused on leveraging its strengths to emerge stronger from the pandemic-induced downturn.