Retail Food Group’s bumper profit lift

gloria-jeansFood retail operator, Retail Food Group, posted a 79.1 per cent increase in profit to $61.3 million as the company purchases a Victorian based food manufacturer and distributor.

The company, which operates major food outlets including Gloria Jeans and Donut King, stated revenue rose 25.4 per cent to $310.47 million in the year to June 30 as it announced the purchase of Hudson Pacific Corporation in an $88 million cash and shares deal.

Retail Food Group posted a 24 per cent increase in earnings before interest, taxes, depreciation and amortisation to $110.2 million.

“It is the tenth consecutive annual underlying EBITDA and NPAT increase for the group, and marks an impressive legacy for outgoing managing director Tony Alford who seamlessly transitioned executive management of the group to Andre Nell at the end of FY16,” said Colin Archer, Retail Food Group chair.

Nell stated that the company’s FY16 performance reflected the growing diversification of the group’s revenue streams across an increasingly global business.

“International and Coffee & Allied Beverage operations have not only flourished as significant earnings drivers in themselves, but represent key platforms upon which RFG will continue to enjoy success well into the future,” he said.

“RFG’s transformation into a global food and beverage company possessed of multiple earnings levers is best illustrated by FY16 divisional EBITDA performance, where contributions from international franchise operations, coffee wholesale and brand system coffee supply generated in excess of 50 per cent of FY16 group EBITDA.”

Retail Food Group announced it is confident of achieving FY17 underlying NPAT growth of 20 per cent, inclusive of an eight per cent contribution from Hudson Pacific.

The company lifted its final dividend 2.75 cents to 14.5 cents, fully franked.

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