Australian Franchise News – 24-08-10
Leading Australian retail food brand manager and franchisor Retail Food Group Limited today reported a 10.6% increase in full year net profit after tax to $26.0m (FY09: $23.5m) delivering a 37% increase in the final dividend to 6.5cps.
Retail Food Group owns the Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s cafe and Big Dad’s Pies franchise systems which collectively have 1,122 stores across Australia and New Zealand.
NPAT from “Core Operations” increased by 12.4% to $26.4m and represented an 8.5% increase in earnings per share (EPS).
Highlights:
- 26% growth in net cash inflow from operating activities to $29.2m
- CODB (cost of doing business) reduction of 23% (or $7.3m) compared to FY09
- Gross margin increase of 3.1% to 63.9%
- net outlet increase of 59
- Weighted Average Weekly Sales increase of 1.55% on FY09
- Completed acquisition of Brumby’s Bakeries master licence territories of New Zealand, Western Australia, North Queensland and Northern Territory
- Completed acquisition of DCM Coffee & Donuts and Big Dad’s Pies franchise systems
- Royalty model delivering enhanced gross profit margin to Michel’s Patisserie franchisees
- Concluded new 3 year debt facility to 2013
Request information on franchise ownership of Donut King franchise