In these increasing sceptical days among stockmarket investors, it’s no wonder shares on Retail Food Group (RFG), the country’s pre-eminent carbs and coffee kings, surged 10% yesterday.
A solid underlying result, higher dividend and a forecast of higher earnings in 2015-16 saw the shares end at $5.28.
Final dividend was boosted one cent to 11.75 cents a share, making a total for the year of 23.25 cents a share, up a cent from the 22 cents paid for 2013-14.
The company is forecasting a 20% rise in net profit for the year to June 30, 2016.
RFG 1Y – Record profits at Retail Food
Retail Food Group, owns Brumby’s bakeries, Pizza Capers and the Donut King chain and lately has become a growing force in coffee and cafes.
In the past year, these have included Gloria Jean’s, Di Bella Coffee and Cafe2U and its newer businesses which have helped Retail Food Group boost sales sharply, offsetting a weak performance from its struggling pizza and baked goods businesses.
RFG, which also owns Michel’s Patisserie, bb’s cafes and Crust Pizza, boosted underlying profit nearly 50% to $55.1 million for 2014-15.
Revenue jumped 47% to $247.50 in the year to June, thanks to the impact of the acquisitions during the year.
Managing director Tony Alford said investment in the coffee industry led to one of the most prosperous years in the company’s history.
"Coffee and allied beverages (have been) a central platform underpinning the group’s performance and growth prospects," he said.
Gloria Jean’s did well, contributing over $15 million to earnings after 16 new franchises were opened across the country.
