Food Franchisor Retail Food Group plunged to $306.7 million loss in financial year 2018 after booking $402.9 million expenses in relation to stores closure, restructuring costs and impairment of assets.
The operator of Gloria Jeanâs and Donut King flags plan to close 250 domestic stores by the end of financial year 2019 based on domestic outlet network analysis undertaken by the group. In store-by-store assessment the group focuses on improving the underlying and sustainable performance of the brands.
Underlying Franchise Operations EBITDA for FY18 was $53.3 million, down 45.3% on FY17. This reflects the ongoing store closure program of the fast food giant as total of 305 outlets were closed in FY18 including 217 domestic outlets. Groupâs underlying net profit after tax declined to $33.3 million compared to $75.7 million in previous year.Â Â Â Â Â [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]
However, revenue for the year ended 30 June 2018 rose 7.1% to $374.0 million on the back of $66.5 million increase in the revenue of Commercial Food Services segment.
During FY18, RFG completed the consolidation of its four coffee operations into a single, integrated business under the established Di Bella Coffee brand.
The group operates in five major segments- Bakery/ CafÃ© Division, QSR Division, Coffee Retail Division, Di Bella Coffee and Commercial Food Services Division. It has opened 101 new outlets over the last 12 months including 93 in international territories but following the accusation of badly treating franchisees, no new outlets has been recognized in second half of 2018.
No dividend was paid in or recognized for the year ended 30 June 2018.
The food franchise company has been having the hard time as it continues to fall on ASX after hitting all-time low of 39.5 cents this month. RFG slipped 9.6% to $0.565 on 31 August 2018 (4:34 PM AEST).
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