Excellent Meat Burger Plant
Excellent Meat Burger Plant is an established supplier of quality Halaal products to wholesalers and retailers in South Africa with its origins as a family-owned and run enterprise. The company entered into an agreement with BURGER KING® SA in 2014 for the supply of burger patties to its national footprint of retail outlets.
effective ownership (as at 30 June 2015)
contribution to GPI headline earnings for the period
|*||GPI Group acquired an additional 65.0% on 7 September 2015, increasing its effective ownership to 96.9%.|
“The partnership with GPI has provided the Company with an unparalleled opportunity to grow.”
GPI directors at Excellent Meat board level
Total employee complement: 32
Production plant in Cape Town supplying the BURGER KING® SA network.
|†||Appointments to be made once control of the investment is obtained.|
Key financial performance indicators (R’000s)
|Revenue||31 350||3 854||–|
|Net profit after tax||(1 464)||(1 280)||–|
|Shareholder loan||11 100||5 000||–|
|Total debt excluding shareholder loans||43 378||45 732||–|
Operating context and performance
Excellent Meat Burger Plant currently supplies approximately 130 tons of beef burger patties to BURGER KING® restaurants around South Africa every month. Revenue for the year ended 30 June 2015 was R31.4 million compared to R3.9 million in 2014.
Given the level of investment made by the partners, Excellent Meat Burger Plant is well equipped to handle the aggressive roll-out of BURGER KING® restaurants in the coming year and beyond. The plant has the capacity to cater for significant future volume requirements as it is currently running at around 20% of its capacity.
The plant has a full management team in place with sufficient expertise and experience to run it independently.
The primary risk for Excellent Meat Burger Plant is associated with the fact that it has just the single facility supplying BURGER KING® restaurants, which increases the potential impact of any operational disruptions at the plant. The management teams of Excellent Meat Burger Plant and BURGER KING® have a mitigating strategy in place to ensure the continued supply of burger patties to BURGER KING®.
The production plant is a state-of-the-art facility that was built according to EU standards and is certified by the Muslim Judicial Council as a Halaal-certified supplier. It is also export-approved by the South African government and has the potential capacity to produce 700 tonnes of burger patties per month.
Excellent Meat Burger Plant is investigating export opportunities within the BURGER KING® worldwide family and recently received its first accreditation to supply meat to a franchisee in Russia. In addition to the potential expansion to export markets, the burger plant will consider adding further BURGER KING® beef products to its range of products in the coming year with the aim of further growing revenue.