Retail Food Group reports profit jump
Leading Australian retail food brand manager and franchisor, the publicly listed Retail Food Group Limited (RFG) today announced a 4.6% rise in net profit, to A$27.2m, for the year ended 30 June 2011 compared with the previous financial year.
RFG is the company that owns a number of successful Australian franchise systems including Donut King, Michel’s Patisserie, Brumby’s Bakeries, bb’s cafe, Esquires and Big Dad’s Pies.
Despite 193 of its outlets being impacted by severe natural disasters such as the Brisbane floods in January 2011, the company has achieved record core Net Profits After Tax (NPAT) of A$27.9m over the past year.
The company’s NPAT represents the sixth successive year that RFG has delivered shareholders record annual profit growth, reflecting a cumulative average growth rate of 35.75% for NPAT and 24.18% for EPS since listing in June 2006.
RFG CEO Tony Alford said, “Notwithstanding the natural disasters and not insignificant retail headwinds, combined franchise system network sales increased $10.5m over FY10 to A$651.1m while forty new outlets have been established, thus validating the continued relevancy of our franchise systems to the consumer as well as the new franchisee candidate market.
“The company’s performance is testament to the effectiveness of its business model and franchise systems as is amply demonstrated by its ability to drive enduring results notwithstanding the severely challenged retail environment which has prevailed throughout FY11. Indeed, but for the natural disasters in Australia and New Zealand in the early part of 2011 which impacted 193 franchised outlets – representing 17% of outlet population – RFG’s core NPAT would have been in the order of 13% to 15% over the previous corresponding period.”