Michel's Patisserie increases contribution to Retail Food Group's financial results

Retail Food Group Limited has announced FY09 net profit after tax of $23.5m, a 33 percent or $5.9m increase on last year's comparative results. The Retail Food Group has a portfolio of four franchise brands: Donut King, Brumby's Bakeries, Michel's Patisserie and bb's cafe.

Commenting on individual system performance, RFG CEO Tony Alford noted that the Michel's Patisserie contribution to the company's earnings before interest and taxes increased by 28.5 percent to $15.2m, closely followed by Donut King with a 27.6 percent increase to $13.5m.

Alford said changes to the system of the cafe franchise had benefited the financial figures. "System transitioning from a wholesale margin model to a traditional royalty based model has been accelerated with over 100 franchisees now operating under the royalty based system.

"The company has also focused on delivering further menu innovation and supply chain solutions," he said. "This coupled with the recent reinvigoriation of the Brumby's Go! brand and establishment of new outlets in supermarkets and service stations will position the company to realise further growth opportunities outside of traditional locations."

Total franchise network sales across the four brands increased $40m on the previous corresponding period to $632m.

Core operations’ net profit after tax was $23.4m, up 52 percent or $8m on the result achieved in FY08. The group showed a strong net cash inflow from operating activities of $23.2m, a 75 percent growth on 2008's financial year results.

In 2009 financial year total debt has been reduced by a further $21.8m, 59 new outlets were commissioned and international expansion continued in China with the opening of four outlets.