Retail Food Group’s full-year profit soars 22 per cent

Retail Food profits soar
The cafe bakery division ’s reported an EBITDA increase of 52.1 per cent to $10.8m. (Source: Facebook/DonutKing)

Multibrand food chain franchisor Retail Food Group (RFG) reports underlying profit growth of 22.3 per cent for the full-year.

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.

For the year to June 30, underlying group EBITDA grew 21 per cent to $26 million while underlying tax-paid profit reached $22.6 million, up 22.3 per cent.

Same-store sales grew by 12.1 per cent when compared to the last financial year while average transaction value (ATV) rose 2.4 per cent. Despite the net closure of 17 outlets, sales across the company’s Australian network rose 7.2 per cent to $502 million.

The cafe bakery division – Brumby’s Bakery, Donut King and Michel’s – reported an EBITDA increase of 52.1 per cent to $10.8 million as customer counts improved and proactive price management across brands helped drive ATV.

RFG to focus on growth

The domestic coffee retail division – Gloria Jean’s, Cafe2U and The Coffee Guy – reported strong network sales with normalised post-Covid trading and an EBITDA increase of 45.6 per cent to $5.7 million

During the year, the company launched a virtual brand, Rack ’em Bones BBQ Ribs and over the coming year will continue to scale the brand.

Peter George, executive chairman of RFG, said that having successfully navigated RFG’s turnaround journey and rebuilt the retail systems that underpin its franchise operations, the company is now focused on growth.

“Driven by our franchisee-first mantra and supported by a new and experienced management team, we are poised to unlock the potential of our growth ambitions for FY24 and beyond.”

RFG CEO Matthew Marshall said the company understands the retail dynamics of its brands and is focused on providing franchise partners with a clear picture supported by the systems, processes and tools necessary to maximise their businesses.

This article was first published on sibling website Inside Retail.