RFG profit up 10.6% to $26mln
The Australian retail food brand manager and franchisor posted 26% growth in net cash inflow from operating activities to $29.2mln.
Retail Food Group CEO Tony Alford said, “Franchisee reported network sales, up $8.6mln despite a challenging retail environment and the programmed rationalisation of poor performing outlets, were supported by a 1.6% increase in weighted average weekly sales together with a 3.2% increase in weighted average transaction values.”
Highlights include:
· CODB (cost of doing business) reduction of 23% (or $7.3m) compared to FY09
· Gross margin increase of 3.1% to 63.9%
· net outlet increase of 59
· Completed acquisition of Brumby’s Bakeries master licence territories of New Zealand, Western Australia, North Queensland and Northern Territory
· Completed acquisition of DCM Coffee & Donuts and Big Dad’s Pies franchise systems
· Royalty model delivering enhanced gross profit margin to Michel’s Patisserie franchisees
RFG has continued the generation of significant net free cash flows which were applied to increase the dividend payout ratio, invest $11.5 million in franchise system acquisitions and attend further voluntary reduction of debt, according to Alford. “As at 30 June 2010 net debt stood at $72.9m, a reduction of 19.5%, or $17.7m, over the previous corresponding period,” he said.
The company also announced the appointment of the National Australia Bank (NAB) as its future debt facility provider. The facility incorporates a three year term, with the refinance of existing facilities anticipated to occur prior to 31 August 2010.
Retail Food Group owns the Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s cafe and Big Dad’s Pies franchise systems which collectively have 1,122 stores across Australia and New Zealand.
