… to pay N1.2 billion dividends
Food Concepts Plc, the parent company of Chicken Republic, posted a net income of N3.31 billion for the 2024 financial year. This represents a 780 percent surge from the N377 million recorded in 2023.
As part of the returns to its shareholders, the group is proposing a 4 kobo per share dividend payment. This represents a N1.2 billion dividend payout for FY 2024, also representing a 35 percent dividend payout for FY 2024
The group, which also operates PieExpress and The ChopBox, generated N95.3 billion in revenue during the year, marking a 44 percent increase from N66.2 billion in 2023. Notably, franchise royalties and related income contributed approximately N523 million to the topline, reflecting growing traction in its partner-led expansion model.
Meanwhile, its operations in Ghana also delivered strong momentum, with revenue more than doubling. It rose by 111 percent to N570 million, compared to N269 million in 2023.
Across geographical segments, Food Concepts’ Ghanaian operations stood out, delivering a N115 million net profit and a robust profit margin of 20.2 percent. It was a sharp contrast to the 3.4 percent margin recorded in its core Nigerian market.
In comparison, UAC Restaurants, the operator of Mr. Biggs and Debonairs Pizza, reported N2.5 billion in revenue for 2024 but ended the year with a net loss of N1.2 billion. The contrasting performance highlights Food Concepts’ operational efficiency within the increasingly competitive quick-service restaurant space.
Key highlights
In 2024, Food Concepts recorded an operating profit of N7.69 billion, more than triple the N2.36 billion reported in the previous year. This strong performance increased its operating margin to 8.1 per cent, a significant improvement from 3.6 per cent in 2023. The margin expansion underscores the group’s growing efficiency and its ability to navigate Nigeria’s notoriously challenging quick-service restaurant landscape.
One of the key drivers of this performance was cost discipline. While revenue surged, the group’s raw materials cost grew at a slower pace, rising 40 percent to N50.2 billion in 2024, from N35.9 billion the year before.
Total assets rose by 18 percent to N48.3 billion, up from N40.8 billion at the beginning of the year. Trade payables climbed to N10.4 billion. With a current ratio of 1.14 and a cash ratio of 0.14, the group’s liquidity appears adequate, though not particularly strong. However, this reflects a working capital strategy focused on operational efficiency, evidenced by a fourfold rise in prepayments, from N1.1 billion at the end of 2023 to N4.4 billion in 2024.
