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RETAIL food franchiser Retail Food Group (RFG) has announced a record first half profit attributed to strong outlet growth and performance.
The company, which owns Crust Gourmet Pizza, Pizza Capers and Donut King among others, has reported a net profit after tax (NPAT) of $17.3 million, an 18 percent increase on the prior corresponding period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was up over 9 percent at $28.1 million from $25.6 million.
RFG Chairman Colin Archer says the performance validates the company’s strategic growth platforms.
“The solid foundations laid for the company, notwithstanding ongoing retail uncertainty and the differential growth maturity profiles of the Brand Systems, continues to position RFG as a proven performer well able to deliver all stakeholders superior outcomes on a sustainable basis”, says Archer.
The company’s total outlet count has now surpassed 1400 stores, with a growth of 79 outlets in the first half of FY14 alone, across Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s café, Esquires Coffee, The Coffee Guy, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza franchise systems.
According to RFG CEO Tony Alford (pictured), the company will continue to pursue new ventures.
“RFG remains motivated to pursue acquisition opportunities in respect of complementary businesses which are EPS accretive, capable of generating increased supply-side scale and enhance the number of Brand Systems and outlets under RFG stewardship,” he says.
The RFG Board today announced a 13% increase in the interim dividend of 10.75 cents per share, fully-franked. The dividend will be paid on April 9, 2014 following a Record Date of March 21 and will constitute an eligible dividend for the purposes of the company’s Dividend Reinvestment Plan (‘DRP’).
The Board has resolved to reactivate the company’s DRP to preserve cash resources due to the number of organic and acquisitive opportunities presented by the market.
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