RFG reports $306.7 million loss
They are also identifying potential revenue opportunities that they can implement across their network.
Retail Food Group (RFG) reported a statutory loss after tax of $306.7 million for the year ended June 30.
Their net profit after tax also took a 56.1% fall to $33.3 million from last year’s $75.7 million. Non-cash impairment, write-downs, and provisions totals to $402.9 million.
In their full-year statutory report, RFG says the loss is driven by factors such as difficult retailing trading conditions, cumulative impact of domestic store closures, effectiveness of tactical initiatives, decline in new store growth, resale and renewal activity, and investment in business turnaround initiatives.
“While RFG performance in FY18 has been disappointing for the Company and its shareholders, we are beginning to realise opportunities to better capitalise on the scale and scope of our operations, to support a more sustainable business model for the Group and our franchise customers,” RFG CEO Richard Hinson said.
“These initiatives include streamlining our organisation and supply chain so that we deliver quality products for our franchisee customers at prices that better allow them to compete successfully and profitably in challenging retail trading conditions,” he added.
Furthermore, RFG have stated they have taken out actions to support their franchise customers such as their annualised reductions of more than AUD$4.5 million in cost of goods and a AUD$1.2 million investment in enhancing wage entitlement audit and compliance activities.
The group also came to an agreement with its senior debt lenders to reset their financial covenants.
“Our focus in the current financial year is to stabilise the business and return it to a profitable platform, and optimise our core operations so that we enhance profitability and returns for both our franchisee customers and RFG,” Hinson said.
