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 Jean’s 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. Group’s underlying net profit after tax declined to $33.3 million compared to $75.7 million in previous year.
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/ Café 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).
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.