Retail Food Group reports profit rise of 19% as food retail remains strong

Posted by James Ferre on 17th February 2009

Australian retail food brand franchisor Retail Food Group Limited today announced net profit after tax rose 19% on the corresponding period last year – exceeding the guidance provided on 19 January 2009.

Total franchise network sales across RFG’s Donut King, Brumby’s Bakeries, Michel’s Patisserie and bb’s café franchise systems for the half year grew to $320.9 million while total outlets increased to 1,066.

RFG Chairman John Cowley was delighted with the company’s growth and was hopeful about the prospect of reaping rewards from their expansion into China. “The Company has exceeded expectations notwithstanding challenging retail conditions, delivering exceptional outcomes for all stakeholders,” he said. “RFG achieved a number of key milestones in the 2009 first half, including entering into the Donut King Master Licence Agreement for China, which has seen two Donut King outlets commissioned, and also reached an agreement pursuant to which the Company disposed of its Central Manufacturing Facility.”

As previously reported, weighted average weekly sales across all outlets grew by 5.8%. This result was supported by an increase in weighted average transaction value exceeding 6.0%.

“Our franchise systems continue to achieve consistent and sustainable growth which is a credit to our dedicated franchisee community, RFG’s business model and our hardworking staff,” RFG CEO, Tony Alford, stated. “Ultimately, RFG enjoys a diversified revenue base which provides strong platform for growth and increased shareholder value.”