Full Year 2024 Retail Food Group Ltd Earnings Call Transcript
Key Points
- Retail Food Group Ltd (RFGPF) achieved a net outlet growth of 42, with 33 new physical locations opened in FY24.
- Underlying revenue grew by 12.9%, reaching $114.9 million, and underlying EBITDA increased by 15% to $29.2 million.
- The cafe-coffee-bakery segment performed strongly, with a 3% increase in network sales, representing 71% of total network sales.
- The acquisition of Beefy's Pies added $1.7 million to underlying EBITDA and maintained an 8% same-store sales growth post-acquisition.
- The company launched new e-commerce platforms, including Donut King Occasions, enhancing accessibility and driving incremental profits for franchise partners.
- The quick service restaurant (QSR) segment faced challenges due to heavy competitive discounting, impacting customer counts.
- Customer count in the cafe-coffee-bakery segment declined by 2.8% over the prior year, despite improvements in the second half.
- The company experienced wage inflation and increased payroll costs due to new remuneration plans and recruitment of senior staff.
- Corporate stores made a small loss on a four-wall EBITDA basis, with a need to improve profitability in the company stores division.
- The company expects some lease write-ups in FY25, although at a smaller level than in FY24, indicating ongoing challenges with the lease portfolio.
Good morning and thank you for joining Rob Shore and I as we proudly share a strong set of results from a successful FY24 for Retail Food Group. With significant challenges facing both the economy at a macro level and more specifically within our food and beverage sector, our key financial metrics not only reflect the resilience of our core brands, but the improved quality of earnings and further momentum against the growth strategy we outlined 12 months ago.
Moving directly to slide three and before providing further context on our performance, let's start with the key numbers from a successful year. We finished the year with 741 domestic outlets, delivering net outlet growth of 42, underpinned by 33 physical new locations opened in the year, reflecting a focus on building scale in our core brands. Domestic network sales grew by 0.3%, driven by the four-year performance of the cafe-coffee-bakery segment that was up 3%, representing 71% of our network sales.
Importantly, we saw an acceleration of network sales in the
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