Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) today announced a net profit after tax of $10.6 million for the first half of financial year 2008-9, representing a 19 percent, or $1.7 million, increase on the previous corresponding period. The net profit after tax from core operations amounted to $11.1 million, up 52 percent, or $3.8 million, compared to the result achieved in the six months to December 31 of the previous financial year.
Total franchise network sales across the group’s four systems Donut King, Brumby’s Bakeries, Michel’s Patisserie and bb’s caf, grew to $320.9 million for the half year; total outlets increased to 1,066. RFG chairman John Cowley said the company “has exceeded expectations notwithstanding challenging retail conditions, delivering exceptional outcomes for all stakeholders”.
In the first half of financial year 2008-9 the company signed a Donut King master licence agreement for China and disposed of its central manufacturing facility which reduced its total debt exposure by about $19 million. Tony Alford, RFG CEO, said “Our franchise systems continue to achieve consistent and sustainable growth which is a credit to our dedicated franchisee community, RFG’s business model and our hardworking staff. Ultimately RFG enjoys a diversified revenue base which provides a strong platform for growth and increased shareholder value.”