Retail Food Group, the owner of brands such as Donut King, Brumby’s Bakery, and Michel’s Patisserie, increased its annual profit by 12 per cent in the 2012/13 financial year to $32 million.
Chairman Colin Archer said supply and competition issues within the Michel’s and Brumby’s franchises were offset by growth in its coffee and takeaway businesses.
Earnings from its takeaway businesses – Pizza Capers and Crust Gourmet Pizza – came in at $10 million, exceeding expectations by $1.8 million.
Retail Food Group acquired Crust, and The Coffee Guy business, in 2012.
As part of a wider push into the gourmet pizza market, the food retailer is working to fast-track the opening of new pizza outlets nationwide in 2014.
The company has a long term plan to have 400 restaurants up and running by the third quarter of the 2014/15 financial year.
Coffee also remains a “fundamental platform” for current and future earnings, CEO Tony Alford said.
“Notwithstanding the excellent historical growth profile, RFG considers that coffee remains a relatively unexploited opportunity with meaningful scope,” he said.