RFG maintains 'buoyant' outlook for FY2016
The Retail Food Group reaffirmed its earnings guidance, announcing its strong start to fiscal year 2016.
The Company reaffirmed FY16 Guidance of 20% underlying net profit growth on FY15.
RFG Managing Director Tony Alford said that FY15 was a momentous period for the Company, with successful acquisitive activity delivering immediate earnings growth and a plethora of new opportunities to the Group.
“Notwithstanding the successful execution of an ambitious development program throughout the entirety of FY15, there remains a vast array of opportunity within reach for the Company. It is not RFG’s intention to remain idle in the face of such opportunity, and as such, the Company is in pursuit of additional revenue drivers able to deliver enhanced and sustainable shareholder outcomes which underpin long term growth,” he said.
As part of this effort, the company announced plans to commission up to three international coffee roasting facilities and distribution hubs in CY16 to service its growing international franchise and licence partners, as well as increasing its wholesale customer base. The new facilities will complement RFG’s existing facilities in Australia, New Zealand and North America.
RFG also announced the entry into contracts (subject to normal terms and due diligence) to acquire adjoining Gold Coast properties which will ultimately serve as the Group’s global headquarters.
New outlet growth in particular has exceeded expectations, both domestically and internationally. Based on current performance, RFG advised new outlet commissionings will result in a record 1H16 new outlet growth of 140, exceeding budget by 25 outlets (or 22%) and representing a remarkable 70% of the Company’s entire FY15 organic outlet commissionings.
International outlet growth, which will represent approximately 50% of 1H16 commissionings, is presently tracking 20% ahead of budget, underpinned by continued traction within the Malaysian, Turkish and Chinese licensed territories. Domestic new outlet growth presently exceeds budget by 10, with strong Gloria Jean’s Coffees and QSR Brand System commissionings.
Alford said, “insofar as new outlet organic growth is concerned, the Company remains comfortably on track to achieve FY16 guidance of 250, and will provide a further update at the time of 1H16 Results publication.”
