Retail Food Group's revenue slumps 6.5% in H1 2020
Same-store sales across its brands lowered by 2%.
Amidst its ongoing turnaround plan, Retail Food Group (RFG) posted a 6.5% year-on-year decline in revenue to $179.5 million from $192 million in H1 2020.
Sans discontinued businesses, revenues were up by $3.7m to $151.4m in the six months ended December 2019, attributed to its manufacturing brand Dairy Country, which saw a revenue jump of almost 20% year-on-year.
Same-store sales (SSS) across all RFG brands system, not including the discontinued businesses, have moderated to 2% in the period, said to be “highly influenced” by “unique” challenges to its Michel’s Patisserie chain.
Excluding the bakery chain, Donut King stood out amongst brands with 1.1% SSS growth.
Moreover, revenues of their brands system were down $10.1m, bogged down by store closures.
“Given the tough retail climate in which the Group’s franchise networks participate, these results demonstrate the growing traction of new product and campaign activity and provide momentum for the 2H20, during which a variety of marketing activations will serve to bolster Same Store Sales performance,” executive chairman Peter George said in a recent disclosure sent to the ASX.
Last December, the company completed its capital restructure, which addressed its debt burden.
“The Company now enjoys a sustainable debt facility, together with a liquidity buffer that provides stability whilst management implements various performance improvement initiatives,” George exclaimed.
In H1 2020, 73 outlets and 10 mobile vans were closed and there were no new outlets opened. The company operated a total of 667 total international outlets across 66 markets.
Starting the new year, RFG settled to dispose of its Hudson Pacific Foodservice estate on 3 January.
Photo Credit: Donut King Facebook