Food services group Famous Brands has reported higher annual earnings as its South African operations outperformed its businesses in the rest of Africa and abroad.The group, which includes Steers, Wimpy, Debonairs Pizza, Mugg & Bean among its brands, on Monday reported a 5.6% increase in revenue to R8.7bn for the year ended February, while operating profit rose 4.5% to R955m. Headline earnings per share rose 12.1% to 583c. The group declared a final dividend of 220.45c per share, resulting in a total dividend of 382c, up 10.7%.The group said in its Leading Brands division, South African revenue increased by 6% to R1bn due to 6% growth in system-wide sales, while like-for-like sales grew by 2.8%.“The growth was driven by the consumer appeal of the brand portfolio, competitive value offerings, careful menu price adjustments and franchise network growth,” it said.In the Southern African Development Community (Sadc), where the group is represented in 11 countries, economic conditions in Botswana and Zambia, where it has the biggest restaurant footprint, deteriorated, undermining consumer spending. Revenue declined 6% to R423m and operating profit decreased to R29m from R51m a year ago.In Africa and the Middle East, where Famous Brands operates in nine countries, revenue was down 17% and the region reported an operating loss of R35m.In its Signature Brands division, revenue was in line with the year before at R202m, but the operating loss widened to R11m from a loss of R9m as the portfolio faced continued pressure, reflecting softer consumer demand for dining out, the group said.It added economic conditions in the UK remain subdued, affecting demand for eating out. Revenue declined 10% and the unit reported an operating loss of R10m from an operating profit R7m before.In its Supply Chain division in South Africa, revenue increased by 7% to R6.2bn due to sustained front end demand and operating profit improved by 14%. “The Supply Chain operations benefited from efficient manufacturing technology and product in-sourcing initiatives. Revenue growth was supported by bringing the Coca-Cola products and frozen retail products distribution in-house,” it said.However, profitability was affected by materially higher beef and coffee prices, which was not fully passed on to franchise partners or consumers. Prices for both commodities have since moderated, Famous Brands said.The group bought back shares valued at R54m since the start of its buyback programme in February.It invested R214m during the year, the major portion of which related to the completion of the Midrand cold storage facility on time to address capacity constraints.The group intends to continue to focus on efficiency and cost discipline, which is expected to support the quality of earnings and its long-term sustainability.“We intend to continue with our capital allocation priorities of earnings distribution, share buyback programme, paying down debt and investing in the growth of the business,” it said.