Retail Food Group profit rises despite trading difficulties
Multibrand food chain franchisor Retail Food Group (RFG) says tax-paid profit increased more than threefold to $5.3 million despite a challenging trading environment.
The company owns and operates Gloria Jean’s, Crust Gourmet Pizza, Donut King, Brumby’s Bakery, Cafe2U Michel’s Patisserie, Pizza Capers and The Coffee Guy.
Earnings before income and taxes rose 4.6 per cent to $17.3 million while same-store sales grew 2.3 per cent compared to the previous year.
Its international division – Master Franchise Partners (MFPs) and Di Bella Coffee – contributed $3.2 million to EBITDA while enjoying a “positive” net outlet growth of 14 new stores during the second half of the year.
RFG executive chairman Peter George described the group’s performance as a “creditable result” given the impact of Covid.
“The company continues to explore various opportunities to facilitate effective and sustainable expansion via new sites and retail concepts while also leveraging existing bricks and mortar outlets to harness virtual store opportunities to expand customer appeal,” he said.
RFG opened nine new outlets during the year offset by the closure of 112 stores – including 27 mobile units – 69 of which occurred during the peak Covid period.
The company said a strong pipeline of more than 80 applicants has been developed for both new and existing stores with 16 outlets at construction stage.