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RETAIL Food Group's (ASX: RFG) 17.3 per cent profit rise to $33.5 million for the first half of FY17 was received warmly in early trade on the ASX today.
The Gold Coast company, which owns and operates more than 2500 outlets of brands including Donut King and Crust Pizza, was trading up 4.21 per cent at $6.44 per share at 12.31pm AEDT.
Its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 15.9 per cent from the prior corresponding period, totaling $56.6 million.
Revenue climbed 9.2 per cent to $161.9 million.
During this period Retail Food Group acquired Hudson Pacific Corporation, to round out its full service food and beverage capabilities. The company isn't ruling out further acquisitions.
Retail Food Group is exposed to 78 territories, with brands like Gloria Jean's reaching as far as New Caledonia and Donut King in Myanmar.
Managing director Andre Nell says the most pleasing aspect of the performance is the diversification of Retail Food Group's earnings base.
He described the company as 'the steward of a multi-faceted and global growth platform' because it 'moderates risk' but also capitalises on new opportunities while supporting existing business units.
The company will move its global headquarters to a larger facility still on the Gold Coast before the end of this calendar year.
It's currently testing new technologies, including a 3D chocolate printer, which will be rolled out at Michel's Patisserie stores next year.
Retail Food Group forecasts a ballpark 20 per cent rise in its underlying profit after tax for the full year.
Retail Food Group is treating its shareholders to a 14.75c per share dividend.
Business News Australia
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