Retail Food Group books lower revenue in first half

Retail Food Group swung to a net income despite lower revenue in the fiscal first half, thanks to an increase in average transaction value and the company’s acquisition of Beefy’s Pies.

RFG’s net profit stood at $5.1 million while revenue fell 1.4 per cent year over year to $61.9 million during the six months ended December 29 last year.

Earnings before interest, taxes, depreciation, and amortisation soared 121.3 per cent to $11.6 million.

The cafe, coffee, and bakery segment’s domestic network sales slid 0.1 per cent to $180.9 million while same-store network sales climbed 3.2 per cent to $168.8 million.

The quick-service restaurant segment’s domestic network sales declined 5.5 per cent to $73.9 million while same-store network sales dipped 1.3 per cent to $70.7 million.

RFG opened 70 new outlets during the first half. In addition, the company completed in December the acquisition of Beefy’s, which contributed an EBITDA of $100,000 in 19 days.

Beefy’s is set to open its first new outlet under RFG in the second half, replacing a previous high-performing closed Brumby’s outlet.

“We understand the challenges in our QSR segment and have actions in place to drive frequency and attract new customers through product innovation, investment in technology and value,” said RFG CEO Matt Marshal.

For the full year, RFG forecasts underlying revenue to grow 8 per cent to 16 per cent to between $110 million and $118 million.

Underlying EBITDA is expected to range from $28 million to $32 million, up 11 per cent to 26 per cent.

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