SWEET PIECE OF THE PROFIT PIE

SWEET PIECE OF THE PROFIT PIE

BRANDCHISOR Retail Food Group Limited today reported a 9 per cent increase in its first half net profit after tax (NPAT) to $13.6 million.

The ASX-listed brand manager also increased its interim dividend by 33 per cent and fought back against increment January weather which forced several of its stores to close, resulting in lost revenues.

Another 20 new outlets have been commissioned following four acquisitions in FY10, including the Esquires Coffee Houses New Zealand master franchise business (46 outlets) together with associated New Zealand and Australian intellectual property rights.

In a statement to the ASX, chairman John Cowley, said the result is particularly satisfying given difficult retailing conditions which ‘continue to suppress franchisee network sales and organic franchise system expansion’.

“RFG remains acutely focussed on those business drivers which generate maximum return at both corporate and franchisee level. We have a tried and tested platform for further growth and maximisation of shareholder value,” he says.

The company has forecast an increase in core FY11 NPAT of between 5 and 10 per cent compared to FY10 of $26.4 million.

RFG franchises are Donut King, Michel’s Patisserie, Brumby’s Bakeries, Esquires Coffee Houses and bb’s café franchise systems with 1102 outlets.

A dividend of 7 cents per share is to be paid to shareholders on April 6.

RFG shares remain stable, trading at $2.85.

Read the full story on Retail Food Group and all of the Gold Coast's top companies in the next Gold Coast Business News - out in march.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

‘Devastated’ boss of collapsed Pivotal Homes warns that risk has swung against builders

The devastated boss of collapsed Gold Coast homebuilder Pivotal Hom...

REMI Capital goes from spruiking for investors to $70m collapse in months

REMI Capital goes from spruiking for investors to $70m collapse in months

Just months ago, boutique investment company REMI Capital was encou...

Queensland lifts casino penalties to $50m with tougher gambling laws

Queensland lifts casino penalties to $50m with tougher gambling laws

Following revelations of questionable anti-money laundering practic...

Australia's top 20 cannabis companies

Australia's top 20 cannabis companies

Whether it’s a “gold rush” to secure registration...