RFG: profit in H1/2010 increased 18 percent

Southport / AU. (rfg) Leading Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) has announced a first-half 2010 NPAT result of 12,5 million AUD, an increase of 1,9 million AUD on the corresponding period last year. The Company´s record result was underpinned by a broadened revenue base, enhanced licence fee revenues and significant reductions in operating expenses.

Given the Company´s strong performance and robust cash position, the Board announced a fully franked interim dividend of 0,0525 AUD per share, to be paid on April 08 following a record date of March 23. RFG CEO Tony Alford says franchisee reported network sales was wholly maintained and supported by growth in weighted average weekly sales and transaction values of 3,5 percent and 3,8 percent over full year 2009.

«This was despite the programmed reduction in franchise outlet population (as a consequence of legacy outlet closures in the Michel´s Patisserie and Brumby´s Bakeries systems) and a challenging retail environment (including subdued shopping centre foot traffic flows and flagging economic stimulus) », Alford says. «Decreased revenues attributable to the strategic disposition of the Company´s Central Manufacturing Facility in January 2009 and the Michel´s Patisserie royalty transition, of which over 160 outlets are now taking part, have been completely offset by increased licence and franchise service fee revenues, allied with a 16 percent reduction in operating expenses», he says.

According to a company statement issued today, RFG remains confident of «liberating further efficiencies» from its business model supported by innovative new product development. With a firm game plan in place, the Company anticipates FY 2010 core NPAT will still be within the range of ten percent to 15 percent increase on FY 2009.

Info: 1H10 PROFIT INCREASE 18% TO $12.5M (complete press release; PDF).
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