Brands Customers Love 
CORPORATE INFORMATION
Chairman
Mr. Odunayo Olagundoye
Managing Director
Mr. Kofi Abunu (Ghanaian)
Directors
Dr. Ikenna Okongwu
Non-Executive Directors
Mr. Babatunde Fajemirokun
Mr. Babacar Ka (Senegalese)
Mr. Marc Stoneham (British)
Mr. Adefolarin Ogunsanya
Mrs. Yemisi Akinbo
Mr. Benjamin Dabrah (Ghanaian)
Company Secretary / Legal Advisor
Mrs. Josephine Johnson, ACIS
Independent Auditors
KPMG Professional Services
KPMG Tower
Bishop Aboyade Cole Street
Victoria Island, Lagos
Principal Bankers
Access Bank Plc
First Bank of Nigeria Limited
Fidelity Bank Plc
First City Monument Bank Plc
Guaranty Trust Bank Plc
Polaris Bank Plc
United Bank of Africa
Zenith Bank of Nigeria Plc
Registered Office Address
2, Ilupeju Bye Pass, Ilupeju, Lagos, Nigeria
Registration Number
RC 370963
TIN: 00671855-0001
Registrars
Meristem Registrars & Probate Services Limited
213 Herbert Macaulay Way
Yaba, Lagos
Solicitors
G. Elias & Co.
6, Broad Street
Lagos
COMPANY STRUCTURE
Human Resources Division: Our Human Resources Division spearheads the people strategy, overseeing recruitment, talent development, and retention. In addition, it manages our advanced training centre, taking charge of designing and implementing various training, incentive, and internal brand engagement programmes to ensure continuous growth and excellence within our team.
The Operations Division: Our Operations Division is responsible for the daily operations of our Chicken Republic, PieXpress and The Chop Box Brands. This division is focused on driving sustainable, year-on-year profitability by growing top-line sales and managing our operational expenses. Our key focus is to: Build strong people capability that enables an enhanced customer experience, with great quality food at everyday affordable prices. We are heavily focused on driving speed of service and creating an environment that is clean, fresh, well-lit and hygienic, whilst applying a disciplined approach to delivering operational excellence.
The Supply Chain Division: Our Supply Chain Division is a multi-faceted profit centre. It controls procurement, warehousing, manufacturing, distribution, Central Kitchens and Pie Production Units. As we increase our store count and new concepts, the importance of delivering high quality products “On Time and in Full” to our stores across the country becomes more complex, requiring constant evaluation of capacity and capability, whilst navigating the various complexities of distribution. We are fully committed to sourcing local talent, raw materials and produce as we continue to support the Company’s growth strategy.
Property Development & Franchising Division: Our business is as much about property as it is about food. Our Property Development & Franchising division is responsible for the acquisition and development of new franchises and company-owned stores, whilst constantly upgrading and maintaining our existing base to brand standards. Our customer needs and competitive environment necessitate the need to constantly evolve our product offerings, manufacturing capabilities and store types. Collectively, these activities contribute to our sustainability and growth as a Company.
Shared Service Division: Our Shared Services Division supports every aspect of the business as it focuses on the consolidated performance and strategic positioning of the Organisation and its Subsidiaries. The team is responsible for the management and integration of key functions across other departments including: Finance, Financial Planning & Analysis, Human Resources, Legal, Risk, Process and Compliance, Quality Assurance, IT, Internal Audit, Marketing and Administrative Services. Achieving world-class Corporate Governance is about ensuring we do the right things consistently across our rapidly expanding business units, we pride and challenge ourselves continuously as we strive to be “Best-in-class”.
| SHAREHOLDER | IN MILLION UNITS | SHAREHOLDING |
|---|---|---|
| ADP II Holding 12 Ltd | 14,564,939,088 | 55,0% |
| Lugacy 1 Limited | 8,250,041,027 | 31,1% |
| Food Concepts International Limited | 321,765,103 | 1,91% |
| Retail Investors | 2,075,590,205 | 7,1% |
| DF Holdings Limited | 1,284,551,798 | 4,9% |
| TOTAL | 26,496,887,221 | 100% |
DIRECTOR PROFILES
INDUSTRY OVERVIEW
The Quick Service Restaurant (QSR) industry in Nigeria has grown rapidly over the years and has become more structured. From the late ’90s where the industry was dominated by one key player and a few family-owned businesses, more structured businesses with good brand names have entered the fray.
In line with global trends, QSRs in Nigeria are beginning to focus on franchising, multiple brands, healthy meals and restaurant management. Also, local QSRs have increasingly expanded their service offerings to include African dishes, in addition to an array of fast food meals.
The Nigerian QSR industry is now dominated by both local and foreign brands. The “Chicken Republic” brand is regarded as one of the leading brands across in the industry and is also the fastest growing QSR brand in Nigeria.
RISK FACTORS
Quality Control Risk
Operational Risk
Reputational Risk
Economic Risk
General Risk Disclosure
Food Concepts relies on suppliers for quality input materials to produce the finished retail food. As such, the Company’s success at producing quality food depends on the quality of the input materials used for the food.
Operational risks are the risks of loss resulting from the failure of people, internal processes, systems or from external events. The Company is built on the quality of service, processes, and quality of food it serves. Consequently, the Company relies heavily on its staff, processes, and systems. If any of these critical success factors do not operate properly, the Company could suffer financial loss, disruption of its business, liability to clients, and reputation damage. The inability of its infrastructure and systems to accommodate an increasing volume of transactions could also constrain its ability to expand its business.
For the business to thrive, the Company relies heavily on the perception its customers have of the business. While the Company continues to work hard to maintain its reputation in all aspects especially with the incidents of food-borne illness and food tampering, it cannot be guaranteed that the Company’s internal controls will be fully effective in preventing all food-borne illnesses. In addition, the Company’s reliance on third-party food suppliers and distributors increase the risk of incidents of food-borne illness which could be caused by third-party food suppliers and distributors outside of its control and negatively affect the Company’s sales.
The general economic condition in the country could affect customers’ expenditure. The Company’s business relies on the spending of its customers and as such its operating results are sensitive to the changes in macroeconomic conditions. If the general economic condition is poor, it could result in lower purchasing power of the Company’s customers which may give rise to a decline in the number of customers and level of transactions in the Company which could negatively impact the financial performance of the Company.
Shareholders should consult their advisers if in any doubt as to the nature of this investment and its suitability in the light of their circumstances. The value of any securities traded (whether listed or not) are subject to investment risks, and fluctuations in the market. There is an inherent risk that losses may be incurred rather than a profit made as a result of buying and selling securities. Past performance is not a guide to future performance. Certain types of investments may not be suitable for all investors.
FINANCIAL RESULTS
Five Year Financial Summary: Group
Five Year Financial Summary: Company
Independent Auditors Report
Unclaimed Dividend & Meristem e-dividend Form
Annual Reports
Shareholders are hereby informed that some dividends have remained unclaimed or are yet to be presented for payment or returned to the Registrar for revalidation. All affected Shareholders are advised to contact the Registrar, Meristem Registrars, 213 Herbert Macaulay Way, Sabo, Yaba, Lagos or via e-mail: info@meristemregistrars.com to resolve any issue they may have with claiming the dividends.
List of Unclaimed Dividends
2019 Investor Presentation