RFG DEVOURS EXPECTATIONS

Written on the 21 February 2013

RFG DEVOURS EXPECTATIONS

RETAIL Food Group (RFG) has beaten forecasts by delivering a net profit of $16.5 million for core operations during the December half-year.

The latest result, a record for the Southport-based group, is up 10.5 per cent on a year earlier, and up from RFG’s own forecast of a 7.5 per cent profit increase.

But the statutory result has come in at $14.6 million, up 0.7 per cent, due to costs linked to problems RFG encountered with its Michel’s Patisseries production agreement.

RFG, owner of Donut King, Brumby’s Bakeries and Michel’s Patisseries, was forced to take over the baking operations for Michel’s during the half.

This led to RFG paying out $2.4 million in “financial accommodation” to Queensland franchisees of Michel’s due to supply disruptions.

RFG now has put in place a national bakery solution for Michel’s which RFG chief executive Tony Alford (pictured) says allows the company to control its own density.

The profit result should cheer RFG shareholders who have been rewarded with a 12 per cent lift in their interim dividend to 9.5c a share.

The half-year profit compares with $15 million a year earlier and has been driven by a 21.2 per cent increase in group revenue to $60 million.

RFG says the result has been buoyed by its acquisitions of The Coffee Guy and Crust Gourmet Pizza, as well as organic growth which added a combined total of 220 new outlets to the group.

Alford says he is confident the systems the company has put in place will continue to benefit shareholders in the current half.

He says the business across the board remains strong, with Donut King a standout performer.

However, he does warn that retail conditions remain challenging after a soft Christmas period.

“But it’s not as bad as what people have been playing to,” says Alford.

RFG is expecting to roll out a total of 80 new outlets across the group by the end of the 2013 financial year, a record for the group for organic growth. It already has added 45 new outlets in the first half.

Alford says no full-year guidance has been given, but he says “we’re pretty happy with where we’re going”.

The interim dividend will be paid on April 9, with a record date of March 21.


Latest News

1700 BRISBANE APARTMENTS NOW MANAGED BY FORTUNE 500 COMPANY JLL

MULTINATIONAL and Fortune 500 company JLL (NYSE: JLL) has expanded its Australian dominance in the property managemen...

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter