An Australian Donut King store

Retail Food Group (RFG) has lowered its forecasted profits for its 2017 financial year.

RFG, which is responsible for numerous quick service food outlets in Australia, is now forecasting it will achieve a net profit after tax 15 per cent higher than what it achieved last financial year.

RFG had previously forecasted a net profit after tax 20 per cent higher than its 2016 financial year.

In an Australian Securities Exchange (ASX) update, RFG said one of its chains, Michel’s Patisserie has experienced supply chain issues driving down its profits.

Advances on marketing funds made to Michel’s Patisserie and RFG’s Pizza Capers, are also not expected to be recovered with less of their stores now open.

RFG said it is “optimistic regarding its future performance, given the Company’s increasingly diversified business model, which affords continuing opportunities for growth.”

At the start of June 2017, RFG shares dropped by 11 per cent after a UBS report said a new accounting standard may negatively impact RFG’s balance sheet.

RFG criticised the report saying UBS would have “no insight” into the impact of the new accounting standard on RFG.

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