Food Concepts Plc, owner of the Chicken Republic, PieExpress, and The ChopBox brands, recorded a net income of N3.31 billion for the 2024 financial year. This represents a 780 percent increase from the N377 million net income reported in 2023.
Group revenue rose to N95.3 billion, a 44 percent increase from the N66.2 billion generated in 2023. Franchise royalties and related income contributed approximately N523 million to revenue.
The company’s operations in Ghana showed significant growth, with revenue rising 111 percent to N570 million, compared to N269 million in 2023.
The Ghanaian segment delivered a net profit of N115 million, achieving a profit margin of 20.2 percent. This contrasted with the 3.4 percent profit margin recorded in the company’s core Nigerian market.
Food Concepts achieved an operating profit of N7.69 billion for 2024, more than triple the N2.36 billion reported in 2023. This increased the group’s operating margin to 8.1 percent, up from 3.6 percent in 2023.
A key factor in the improved profitability was cost management. While revenue grew 44 percent, the cost of raw materials increased 40 percent to N50.2 billion, from N35.9 billion the previous year.
The group is proposing a dividend payment of 4 kobo per share for the 2024 financial year. This represents a total dividend payout of N1.2 billion, equivalent to a 35 percent dividend payout ratio.
Financially, Food Concepts’ total assets increased by 18 percent to N48.3 billion at the end of 2024, compared to N40.8 billion at the start of the year. Trade payables climbed to N10.4 billion.
The group reported a current ratio of 1.14 and a cash ratio of 0.14. Prepayments rose significantly, reaching N4.4 billion in 2024 compared to N1.1 billion at the end of 2023.
This performance contrasts with that of UAC Restaurants, operator of Mr. Biggs and Debonairs Pizza, which reported N2.5 billion in revenue for 2024 but recorded a net loss of N1.2 billion.
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