Retail Food Group swings to $15m loss as sales flatline

Retail Food Group (RFG) swung to a loss amid flat sales in the last fiscal year, with management considering the divestment of one of its brands this fiscal year.

The company, whose core brands include Gloria Jean’s, Donut King, Brumby’s Bakery, Crust Pizza and Beefy’s Pies, reported domestic network sales of $505.4 million for the year ended June 27, up 0.3 per cent on the previous year.

Same-store sales were down 0.2 per cent, with a 2.2 per cent increase in the fourth quarter offset by declines in the first three quarters.

Underlying revenues rose 13.6 per cent to $102.7 million, mainly driven by growth at Beefy’s Pies. Underlying earnings before interest, taxes, depreciation, and amortisation grew 1.7 per cent to $29.6 million.

Meanwhile, statutory net loss after tax was $14.9 million compared to a profit of $5.8 million in the prior year. This was impacted by a $12.2 million non-cash impairment at Brumby’s Bakery, as well as provisions and asset impairments related to restructuring.

The company is exploring options for the divestment of Brumby’s this fiscal year, explaining that the brand is no longer within its strategic growth pillars. RGF acquired Brumby’s in 2007.

In February, the company signed a 20-year agreement with Restaurant Brands International to launch the Firehouse Subs brand in Australia, with 165 stores to open in the first 10 years starting mid-2026.

RFG has also launched its store strategy, which will see company-owned stores transition to franchise partner ownership or permanently close. This will allow the company to focus on growing Beefy’s Pies and Firehouse Subs, as well as the Gloria Jean’s Robina and Donut King Burleigh Heads locations. 

As of June 27, RFG operated approximately 1250 outlets in 30 countries, with 38 new openings in Australia and 93 openings internationally during the year.

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