Olufemi Adeyemi
Food Concepts Plc, the operator behind the popular Chicken Republic brand, has announced a robust financial performance for 2024, posting a net income of ₦3.31 billion—an eightfold increase from ₦377 million in 2023.
The company, which also runs PieExpress and The ChopBox, saw revenue rise by 44% to ₦95.3 billion, compared to ₦66.2 billion the previous year. The growth was supported by a mix of strong core restaurant sales, expanding franchise operations, and disciplined cost management. Franchise royalties and related income alone contributed approximately ₦523 million to the topline, reflecting steady momentum in Food Concepts’ partner-led expansion strategy.
Reflecting its improved profitability, the board is proposing a dividend of 4 kobo per share. This represents a total payout of ₦1.2 billion for the 2024 financial year, equating to a 35% dividend payout ratio.
“Our strong results this year highlight our operational discipline and the success of our franchise model,” the company said in a statement to investors.
Food Concepts also delivered notable gains in its regional operations. In Ghana, revenue more than doubled, climbing 111% to ₦570 million from ₦269 million in 2023. The Ghanaian unit posted a net profit of ₦115 million, achieving a profit margin of 20.2%—sharply outperforming the group’s core Nigerian market, which recorded a much slimmer margin of 3.4%.
The broader quick-service restaurant (QSR) industry in Nigeria has faced persistent cost pressures and intense competition. But Food Concepts’ 2024 performance stands out against the sector’s challenges. For context, rival UAC Restaurants—the operator of Mr. Biggs and Debonairs Pizza—reported ₦2.5 billion in revenue for 2024 but ended the year with a net loss of ₦1.2 billion, underscoring the competitive advantage Food Concepts has developed in cost and operational efficiency.
Food Concepts’ operating profit more than tripled to ₦7.69 billion in 2024 from ₦2.36 billion in 2023. This lifted its operating margin to 8.1%, a significant improvement from 3.6% the year before. The margin expansion was largely driven by strong revenue growth outpacing input costs.
Specifically, while revenue surged 44%, the group’s raw materials costs grew by a slightly lower 40%, reaching ₦50.2 billion in 2024, up from ₦35.9 billion in 2023. This cost discipline contributed meaningfully to overall profitability.
Food Concepts also reported an 18% increase in total assets, rising to ₦48.3 billion from ₦40.8 billion at the start of the year. Trade payables climbed to ₦10.4 billion, and prepayments rose sharply—from ₦1.1 billion in 2023 to ₦4.4 billion in 2024—a sign of more proactive procurement and working capital strategies.
The company’s liquidity ratios reflect a balanced approach to managing growth and operations. Its current ratio stands at 1.14, suggesting reasonable coverage of short-term liabilities, while a cash ratio of 0.14 indicates modest immediate liquidity. Analysts note this working capital profile is typical of capital-efficient retail businesses, with funds reinvested aggressively to sustain growth.
As Nigeria’s QSR sector continues to navigate inflationary pressures, currency volatility, and evolving consumer habits, Food Concepts’ 2024 performance offers a case study in disciplined growth, cost management, and regional diversification. The proposed dividend also signals management’s confidence in maintaining momentum while delivering value to shareholders.