Retail Food Group Limited · ASX:RFG
Retail Food — H1 2012 Earnings Presentation
19 slides from Retail Food's earnings presentation, Mar 1, 2012
Slide 1: Half Year Results Presentation - 1H12
RETAIL= OOD GROUP STRENGTH IN BRANDS MA(OYVES: ta06 BL] HALF YEAR RESULTS PRESENTATION - 1H12
Slide 2: About Retail Food Group Limited
About Retail Food Group Limited (ASX: RFG) For personal use only RFG designs, develops and manages retail franchise systems and is the intellectual property owner and licensor of the following franchise systems: Donut King Michel’s Patisserie Brumby’s Bakery (1) bb’s café and Esquires Coffee Houses
Slide 3: 1H12 Results Summary
1H12 Results Summary For personal use only Statutory Results Core Operations (1) 1H10 1H11 1H12 PCP % 1H11 1H12 PCP % Franchise Network Sales (2) $321.2m $326.7m $344.2m 5.4% Total Revenue (3) $61.3m $60.3m $49.5m (17.9%) EBITDA $22.0m, $22.6m $24.4m 8.0% $23.3m $25.1m 7.5% EBIT $21.5m $22.2m $24.0m
Slide 4: Highlights
1H12 Highlights For personal use only EBIT up 8.1% to $24 million assisted by: 6 months contribution from Esquires Coffee Houses, modest positive AWS growth across all systems, and 4 months contribution of the NZ based Evolution Coffee Roasters Group Business model withstanding retail challenges: re
Slide 5: Highlights
1H12 Highlights For personal use only Strong balance sheet maintained: cash to EBITDA conversion rate c.95% strong cashflows supporting an increase in dividend of 21.4% to 8.5cps and an increase in the dividend payout ratio to 63% debt reduced from $85.6 million to $79.6 million, facility headroom n
Slide 6: Financial Summary
1H12 Financial Summary For personal use only 1H12 1H11 Programmed reduction in wholesale $’m $’m revenue of $15.7m reflects transition of Revenue from franchising operations 38.4 33.7 Michel's franchisees to traditional royalty Revenue from wholesale / retail operations 18.0 33.7 model 56.4 67.4 Cos
Slide 7: Multiple Revenue Streams
1H12 Multiple Revenue Streams For personal use only 7 Retail Food Group Limited - 1H12 Results Presentation
Slide 8: Cashflow Performance
1H12 Cashflow Performance For personal use only 1H12 1H11 Exceptional cash inflows notwithstanding $’m $’m challenged retail environment Receipts from customers 59.8 74.8 Payments to suppliers and employees (36.7) (51.9) Circa 95% (1H11: 101%) conversion of operating cash flow into EBITDA reflects:
Slide 9: Financial Position
1H12 Financial Position For personal use only 1H12 FY11 $’000 $’000 Increase in net assets by $6.9m reflects Assets: reduced working capital requirements and Cash reserves 10.5 15.2 well managed debt and equity structures Trade receivables 13.5 12.3 Financial assets 3.9 3.1 Significant cash holdings
Slide 10: KPIs
1H12 KPIs For personal use only Average Weekly Sales (AWS) Average Transaction Values (ATV) System 1H12 1H11 1H10 1H12 1H11 1H10 Donut King 9,972 9,853 9,716 5.37 5.25 5.08 Growth v pcp 1.2% 1.4% 0.7% 2.2% 3.4% 4.3% Brumby's 13,983 13,766 13,731 6.00 5.94 5.85 Growth v pcp 1.6% 0.3% 1.1% 1.0% 1.6% 4
Slide 11: Outlet Population
1H12 Outlet Population For personal use only Franchise System Total Outlets Australia NZ Other International Donut King 362 343 2 17 bb’s cafe / Esquires 100 35 65 - Brumby’s 343 327 15 1 Michel’s 331 327 3 1 Total 1,136 1,032 85 19 20 new outlet commissionings consistent with guidance 32 outlet clo
Slide 12: FY12 Marketing and Innovation
FY12 Marketing and Innovation For personal use only FY12 Projects: Brand evolution progressing across all systems: • extended menus • re-invigorated product lines • store livery • enhancement in digital and social engagement • less reliance on enclosed shopping centre environment Flagship Australian
Slide 13: FY12 Marketing and Innovation (continued)
FY12 Marketing and Innovation (continued) For personal use only 1H12 Achievements Donut King’s Royal Bean Coffee offering enhanced, increasing coffee volumes by c.7% Launched national barista championship, 700 outlets participated increasing expertise and barista certification Successful launch of 1
Slide 14: Acquisition - Evolution Coffee Roasters Group (ECR)
1H12 Acquisition - Evolution Coffee Roasters Group (ECR) For personal use only Settlement achieved September 2011: 2QFY12 operation equivalent to full year FY11 150 key accounts retained, 20 new customers added green bean purchases up 12.8% and on track to exceed 250 tonne pa supply of bb’s café ble
Slide 15: 2H12 Acquisition – Pizza Capers
2H12 Acquisition – Pizza Capers (PC) For personal use only Background: Pizza Capers (PC) is positioned: • in the Quick Service Restaurant (QSR) segment of Australian fast food market, and • in niche “gourmet pizza” as opposed to value end of the spectrum founded in Brisbane in 1996: • accelerated gr
Slide 16: 2H12 Acquisition – Pizza Capers
2H12 Acquisition – Pizza Capers For personal use only Background (continued): under RFG’s stewardship PC will continue to be operated by founders Anthony Russo & Scott Geiszler traditional royalty based franchise model all outlets franchised (RFG acquiring no company operated stores) outlet populati
Slide 17: 2H12 Integration – Pizza Capers and RFG
2H12 Integration – Pizza Capers and RFG For personal use only Integrated outlook following transaction completion: 10% increase in outlet population to c. 1250 outlets positions RFG for the first time in QSR segment enhances acquisition opportunity increases international licensing options less reli
Slide 18: FY12 Outlook
FY12 Outlook For personal use only Previous guidance at AGM: c.10% full year core NPAT 1H12 new outlet growth +20, 2H12 new outlet target +20 2H12 outlet closures similar to 1H12 Financial performance to continue: • coffee revenues up, integration and 3rd party sales continuing • bakery restructure
Slide 19: RFG Disclaimer
RFG Disclaimer For personal use only No responsibility for contents of Presentation To the maximum extent permitted by law, Retail Food Group Limited (ABN 31 106 840 082), its officers, advisers and representatives: make no representation, warranty or undertaking, express or implied, as to the adequ