Southport / AU. (rfg) Leading Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) announced a 134 percent increase in net profit in spite of the recent economic turbulence which has hit consumer confidence. The owner of the Donut King, Brumby´s Bakeries, Michel´s Patisserie and bb´s café franchises saw growth stimulated by their purchases of Brumby´s and Michel´s and a record number of new store commissionings (61). There is now a total of 1’052 franchised outlets under RFG´s four systems comprising:
307 Donut King outlets (a net increase of 18 outlets on 2007)
329 Brumby´s Bakeries outlets (a net increase of eight outlets on 2007)
348 Michel´s Patisserie outlets, (a net increase of six outlets on 2007), and
068 bb´s café outlets (a net decrease of three outlets on 2007).
RFG Chairman John Cowley said the Company had exceeded management´s expectations during the past twelve months. «The Company has now fulfilled all aspects of the strategic growth plan outlined in RFG´s May 2006 Prospectus, delivering upon its commitment to shareholders and transforming itself into a genuine market leader within the retail food franchising industry. Not only has the Company added two successful and highly recognized franchise systems to its portfolio in Brumby´s Bakeries and Michel´s Patisserie, it has continued to achieve consistent and sustainable growth in new outlet openings, outlet average weekly sales and outlet average transaction values».
The financial year also saw an increased roll-out of product to Donut King outlets from the Central Manufacturing Facility and the entry into a Master License Agreement to enable the Donut King brand to enter the Chinese marketplace (see «RFG: completes Donut King deal in China» on July 04, 2008).
RFG CEO Tony Alford acknowledged that current economic conditions were not ideal but believes the company will be able to cope in spite of falling consumer confidence and spending. «Whilst no business is immune from present market conditions, RFG´s systems have historically traded well during retail and economic adversity. Our franchise systems are well positioned in terms of product and service delivery to absorb the many current external market pressures». A further 50 outlets across the RFG franchise systems are expected in 2009.
