RFG reports strong first half performance
Retail Food Group announced record first half underlying earnings of $32.1million, an increase of 27.1% from the comparable period last year.
According to the company's financial data, 1H16 underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) was recorded at $53.5million, representing a 36.4% increase.
RFG Chairman Colin Archer said, "In terms of network scale and penetration, RFG has now surpassed the 2,500 outlet milestone, has Brand Systems licensed across 63 international territories, and has exponentially increased the global opportunities now available to the Company from both franchise and supply-side standpoints. RFG is now indisputably a leader in its industry, not just domestically, but across the globe.”
RFG Managing Director Tony Alford noted that 1H16 was the first period in which RFG was able to focus on realising the growth opportunities presented by the enhanced revenue generating platforms, enlarged scale and international penetration now possessed by the Group since its acquisitions last year.
During 1H16 RFG commissioned a record 142 outlets across its domestic and international networks.
Alford said the record growth demonstrates the continuing relevance of RFG’s Brand Systems within the competitive franchise market, supported by previously untapped global opportunities as the Group continued its expansion of international franchise operations.
“The Company’s new outlet growth over the first half is a remarkable outcome, with 69 domestic outlet commissionings up 12 on 1H15, and 73 international outlet commissionings representing an increase of 55 above 1H15,” said Alford.
“In addition to record organic net outlet growth of 63, RFG achieved a milestone with the commissioning of its 2,500th outlet, a momentous occasion when placed in perspective of the Company’s portfolio of 327 outlets at Listing in 2006.”
Contributing around 17% (or $9 million) to 1H16 EBITDA, RFG’s international performance was driven by the commissioning of a record 73 new outlets, and the grant of six new Master Franchises bringing the Group’s tally of international licensed territories to 63.
“RFG’s international operations are delivering the Company a multi-faceted platform for relatively low risk, sustainable growth,” Alford said.
“Significant opportunity for penetration of new markets remains, with the Company focused on extending its presence within India, Asia, Europe, the Middle East and the USA. In that respect, RFG continues to engage with a number of interested parties and is confident of realising new Master Franchise Partner relationships in the near term.”
With increasingly diverse global operations, strong growth-driving initiatives across all business units, and several new revenue streams being pursued, RFG said that it will maintain its guidance for FY16 of underlying NPAT growth of c.20%.
