Famous Brands sets sights on sustainable growth buyback strategy
Famous Brands has announced the start of a share buyback programme, the culmination of the past focus on deleveraging to strengthen our balance sheet and in line with its strategy to deliver sustainable growth and enhanced shareholder returns.
Famous Brands intends to repurchase approximately 5% of its issued share capital at current share price levels, commencing 1 February 2026 (Image source: © Famous Brands famous Brands
Famous Brands intends to repurchase approximately 5% of its issued share capital at current share price levels, commencing 1 February 2026.
This would represent the maximum number of shares permitted to be repurchased as approved by shareholders.
Over time, it intends to deliver a reduction in the equity base, providing an ongoing source of shareholder returns in addition to cash dividends.
Darren Hele, Famous Brands CEO, says the launch is an important milestone in their capital allocation framework.
“ The continued deleveraging of our balance sheet and investments has set us up for improved strategic and operational execution across the value chain. Disciplined capital allocation has strengthened our balance sheet in pursuit of improved leverage levels”.
Strategic plan
Its strategic plan is underpinned by a disciplined capital allocation framework, the priorities of which include:
- Fund franchising growth in South Africa and selected African markets.
- Invest in logistics and manufacturing capacity.
- Deleverage to support a strong and efficient balance sheet with improved leverage levels.
- A progressive dividend payout, in line with underlying business performance.
The repurchase will be funded from available cash resources.