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- Retail Food Group (RFG) delivers an underlying EBITDA guidance of around $21.4 million for FY22
- The global food and beverage company says it was significantly impacted by COVID-19 in the first half of the year, however the second half has gradual improved
- Retail Food Group’s coffee-based brands, such as Donut King and Gloria Jean’s, have experienced increased customer counts which have contributed to increased sales
- Additionally, the company says there’s hasn’t been a “material progression” in the Michel’s Patisserie class action which relates to conduct under former RFG leadership
- RFG shares are up 7.14 per cent and trading at 4.5 cents per share at 2:09 pm AEST
Retail Food Group (RFG) is expecting to report an underlying earnings before interest, tax, depreciation, and amortisation of around $21.4 million in FY22.
The company said it was significantly influenced by the unavoidable COVID-19 impact, particularly in the first half of the year, however it has seen improvements since COVID restrictions have eased.
Unlike FY21 when it received $3.7 million in JobKeeper payments, RFG didn’t receive any JobKeeper payments in FY22 and at the end of June, it expects to have about $22.5 million in net debt.
The global food and beverage company has continued to see a gradual improvement in network performance during the second half including growing customers.
The customer growth in the second half year to date (January to May) trading data reflects a weighted average increase of over 10.1 per cent across the network versus the the first half.
While still below pre-COVID levels, customer counts have increased at the company’s coffee-based brands such as Donut King, Gloria Jean’s and Michel’s Patisserie.
Executive Chairman Peter George said the customer numbers contributed to improved sales for franchise partners at store level, with FY22 year to date weighted average network same store sales (SSS) having increased above 2.2 percent on the prior corresponding period.
“A positive growth trend has emerged throughout the 2H22 as customers have returned. network sales over the past two weeks have reflected the highest weekly sales across FY22YTD on a SSS basis. The last week’s network sales are the highest achieved on a SSS basis in the past 24 months,” he said.
“The various positive indicators observed across the Group’s business during the 2H22 provides confidence that RFG continues to tread the right path in its turnaround journey, although with a clear appreciation of the challenging trading environment that continues to exist.”
Additionally, the company has also said there has been no material progression in the Michel’s Patisserie class action, which is in its early stages.
The proceedings are related to historical operations and conduct under former RFG leadership.
On the market, RFG shares were up 7.14 per cent and trading at 4.5 cents per share at 2:09 pm AEST.
