Taste revenue skyrockets by 303%

Group revenue was at R136.3 million, up 303% from the R33.8 million reported for the previous period. Operating profit at R25.6 million was up from the R11.7 million reported before.

The Taste Food division continues to grow top-line sales, and the strong value offerings of both Maxi's and Scooters Pizza place the brands at the forefront of consumer choice in the areas in which they operate, Taste said.

It said that Scooters Pizza had approved a new mall concept, and Maxi's penetration into the Caltex network will offer the Food division new growth opportunities during 2009.

Taste said it would continue to explore the vertical integration opportunities within this division.

"The division is containing costs within its revenue growth prospects and both brands plan to increase their marketing spend over the previous year," said Taste.

Taste said that the Jewellery division, although not as defensive as the Food division by industry, was fortunate to be at the value end of the segment with arguably the strongest value proposition among the top four chains.

It said that NWJ had three new stores planned for the first half of the year and would realise margin improvement by the end of the year as a new manufacturing and stock control system was implemented.

"The sale of selected company stores as part of the retail strategy will release cash and enhance the cash flow of the division. New sites are increasingly becoming available as independent jewellers feel the brunt of buying down in this sector."

Taste said that through its manufacturing division NWJ was able to respond quickly to changing consumer needs and thereby maintain its strong value offering to end consumers.

"Its relatively stronger advertising spend and franchise ownership model positions it favourably to gain market share from the other chains during the coming year."

Taste said that it remained committed to becoming a diversified franchisor invested in retail and restaurant brands within Southern Africa.

While the group will continue to assess opportunities in line with its strategy, Taste said it was focused on growing its current divisions profitably by aggressively containing costs; driving top-line system-wide sales; and extracting synergies between the brands, particularly the head office support costs of the franchise divisions.

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