UK's Franchise Brands H1 revenue, operating profit rises on higher system sales
UK's Franchise Brands H1 revenue, operating profit rises on higher system sales
Overview
UK B2B franchise services group's H1 revenue rose 7.4% and adjusted EBITDA grew 6.5%
Adjusted EPS for H1 increased 8.9% year-over-year
Company cites record system sales and Filta International's strong performance as growth drivers
Outlook
Franchise Brands expects full-year performance to be in line with market expectations
Company cites volatile macroeconomic conditions and is not assuming tailwinds in H2 2026
Franchise Brands' strategic initiatives aim to drive System sales growth and control costs
Result Drivers
FILTA INTERNATIONAL PERFORMANCE - Filta International saw strong growth due to elevated used cooking oil prices, increased volumes, and expanded service range
US MARKET GROWTH - The US was the standout performer, with system sales growth outpacing the UK and Europe
COST CONTROL AND PLATFORM BENEFITS - Administrative expenses were well controlled and reduced as a percentage of sales, driven by strict cost control and benefits from the One Franchise Brands platform
Company press release: ID:nRSc2651Oa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 System Sales |
| GBP 229.22 mln |
|
H1 Adjusted EBITDA |
| GBP 18.54 mln |
|
H1 Gross Profit |
| GBP 43.94 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for Franchise Brands PLC is GBp192.00, about 29.7% above its July 28 closing price of GBp148.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)