Retail Food Group has announced it will explore options to divest Brumby’s within the year. RFG acquired the bakery chain in 2007 but has said it no longer sits within its strategic growth pillars.
The group’s corporate store strategy will focus on driving rapid growth in Beefy’s Pies and Firehouse Subs. Company-owned stores in other brands in the portfolio will either transition to franchised outlets or close.
The company, whose core brands include Gloria Jean’s, Donut King, Brumby’s Bakery, Crust Pizza and Beefy’s Pies, reported domestic network sales of $505.4 million for the year ended June 27, up 0.3 per cent on the previous year.
Same-store sales were down 0.2 per cent, with a 2.2 per cent increase in the fourth quarter offset by declines in the first three quarters.
Underlying revenues rose 13.6 per cent to $102.7 million, mainly driven by growth at Beefy’s Pies. Underlying earnings before interest, taxes, depreciation, and amortisation grew 1.7 per cent to $29.6 million.
Meanwhile, statutory net loss after tax was $14.9 million compared to a profit of $5.8 million in the prior year. This was impacted by a $12.2 million non-cash impairment at Brumby’s Bakery, as well as provisions and asset impairments related to restructuring.
In February, the company signed a 20-year agreement with Restaurant Brands International to launch the Firehouse Subs brand in Australia, with 165 stores to open in the first 10 years starting mid-2026.
RFG’s store strategy will allow the company to focus on growing Beefy’s Pies and Firehouse Subs, as well as the Gloria Jean’s Robina and Donut King Burleigh Heads locations.
As of June 27, RFG operated approximately 1250 outlets in 30 countries, with 38 new openings in Australia and 93 openings internationally during the year.
Earlier this year RFG announced the end of the Michel’s Patisserie brand.
This is an edited version of an article that was first published on sibling website Inside Retail.
