Famous Brands trading update, still looking good

Famous Brands, another one of those over achievers, released a trading update which indicated headline earnings per share growth of 14%-16%. On a diluted basis this will come in between 270c-275c per share. The company is not cheap but in recent memory, it never has been. Trading at R52.90 the stock trades at 19.3 times earnings. But the fundamentals look very strong for this extremely well managed business to carry on growing.

They have great brands in a nation that has a growing middleclass with aspirations to consume their products. Fast food around the globe is being lapped up by the developing world. Yum Brands and McDonalds are doing fantastically and it makes perfect sense. It's convenient, affordable and people absolutely love to eat. As the demographics of South Africa changes, Famous Brands are perfectly poised to benefit. They just need to maintain their brilliant brand portfolio. The full results are coming out on the 21st of May where we will have a closer look.


Only three of their territories saw their respective subscriber bases contract were Guinea-Conakry, Congo - Brazzaville and Syria. MTN describes the Syrian business as follows: "Its performance continued to be hampered by civil unrest in the country, which resulted in a reduction of subscriber numbers of 23 000 subscribers and a decline in local currency ARPU of 8,5%." Hampered? The place is as close to a disaster as you get, it is quite surprising that it is still OK, relatively speaking. Notwithstanding that, MTN still expect to add 450 thousand subscribers in Syria for the year. In fact, in total MTN are expecting to add 21.3 million subscribers.