Retail Food Group Limited · ASX:RFG
Retail Food — FY2024 Earnings Presentation
27 slides from Retail Food's earnings presentation, Aug 20, 2024
Slide 1: FY24 Results Presentation
Retail Food Group Limited Level 4, 35 Robina Town Centre Drive Robina Qld 4226 20 August 2024 FY24 Results Presentation Please find enclosed for release to the market Retail Food Group Limited’s FY24 Results Presentation. This announcement has been authorised for release by the Board of Directors. E
Slide 2: Financial Results
20 FINANCIAL RESULTS 24 RETAIL FOOD GROUP
Slide 3: Financial Results Agenda
FY24 FINANCIAL RESULTS| AUGUST 2024 Financial Results Agenda Matt Marshall 1. Business update Chief Executive Officer 2. Full year financial performance 3. Q&A Results Webinar Tuesday 20 August 10:00am AEST Conference call: https://s1.c-conf.com/diamondpass/10040991-5k3ixg.html Webinar: Rob Shore ht
Slide 4: Key numbers from a successful year
FY24 FINANCIAL RESULTS| AUGUST 2024 Key numbers from a successful year 741 $114.9m OUTLETS - DOMESTIC NET OUTLET GROWTH OF +42 UNDERLYING REVENUE1 WITHIN GUIDANCE RANGE (PCP: DOWN 17) UP 12.9% ON PCP 33 $29.2m NEW PHYSICAL LOCATIONS UNDERLYING EBITDA2 WITHIN GUIDANCE RANGE OPENED IN THE YEAR3 UP 15.
Slide 5: Key takeaways from a successful year
FY24 FINANCIAL RESULTS| AUGUST 2024 3 Key takeaways from a successful year Group Back In Network Health Delivering on New Growth Improved Strategy • Network Sales Growth of +0.3% on • Average Weekly Sales3 up +5.3% • IT investments plan on track and PCP, acceleration in H2 +2.4% on PCP launched DK O
Slide 6: About Retail Food Group
FY24 FINANCIAL RESULTS| AUGUST 2024 About Retail Food Group Retail Food Group is a global food and beverage company headquartered in Queensland, Australia. RFG is Australia’s largest multi-brand retail food and beverage franchise owner with a portfolio of quality franchise brands under its ownership
Slide 7: We own and operate household brands
FY24 FINANCIAL RESULTS| AUGUST 2024 We own and operate household brands 204 15.9m 136 11.1m 78 7.9m 10 1.0m 133 2.8m TRADING CUSTOMER TRADING CUSTOMER TRADING CUSTOMER TRADING CUSTOMER TRADING CUSTOMER OUTLETS COUNT OUTLETS COUNT OUTLETS COUNT OUTLETS COUNT OUTLETS COUNT 1. All figures weeks 1 – 52
Slide 8: Customer at the core of our purpose
FY24 FINANCIAL RESULTS| AUGUST 2024 Customer at the core of our purpose We are evolving our organization to be closer to our customers, focusing on elevating customer experience to drive growth and increase franchise partner profitability. PURPOSE We strive for a positive customer experience in ever
Slide 9: In FY25 we will change our corporate name
FY24 FINANCIAL RESULTS| AUGUST 2024 In FY25 we will change our corporate name1 With a new name, identity, and branding we aim to create a purposeful and memorable engagement for employees 1. Subject to approval by shareholders via a resolution which will be submitted for approval at the 2024 AGM 8
Slide 10: We have multiple organic growth drivers
FY24 FINANCIAL RESULTS| AUGUST 2024 We have multiple organic growth drivers GREAT CUSTOMER A HEALTHY ACCELERATED GROWTH HIGH PERFORMING EXPERIENCES NETWORK TECH SOLUTIONS FOCUSED TEAM We strive for a The health of our Investment in Focus on attracting A highly capable positive customer Franchise Par
Slide 11: Delivering growth in a tough retail environment
FY24 FINANCIAL RESULTS| AUGUST 2024 Delivering growth in a tough retail environment In a tough macro retail environment, we have successfully delivered network Coffee, Café, Bakery Quick Service Restaurants sales growth by focusing on • Strong results delivered with resilient • Network sales decline
Slide 12: Strength in franchisee profitability
FY24 FINANCIAL RESULTS| AUGUST 2024 Strength in franchisee profitability • During FY24 Average Weekly Sales (‘AWS’) +9.0% up 5.3% to $16.6k driven by CCB and CCB AVERAGE WEEKLY SALES demonstrating improved network health IMPROVEMENT • All brands except Crust & Rack’em Bones saw AWS improvements in F
Slide 13: eComm & Technology investments
FY24 FINANCIAL RESULTS| AUGUST 2024 eComm & Technology investments Crust Rack 'em Bones • Rack ‘em Bones BBQ Ribs has • Crust has converted to our launched an online ordering standard POS to unlock customer portal with direct delivery, delivery tracking and reaching new customers and improvements in
Slide 14: Focused on quality of growth
FY24 FINANCIAL RESULTS| AUGUST 2024 Focused on quality of growth Net Outlet Growth Partnerships with our best operators • Net outlet growth in FY24 of +42 • New incentive program launched • Continued focus on core brands that • 4 multi-site operators (MSOs) immediately committed can scale to over 20
Slide 15: Beefy's Update
FY24 FINANCIAL RESULTS| AUGUST 2024 Beefy’s Update • Beefy’s Pies acquired 11 December 2023 $10.0m ACQUISITION • Same Store Sales growth of +8.1% in post acquisition period CONSIDERATION • Opened first new store since 2021 at Ballina, NSW and leases signed for next three locations $1.7m UNDERLYING E
Slide 16: FY24 Financial Results
FY24 FINANCIAL RESULTS| AUGUST 2024 FY24 FINANCIAL RESULTS $504m • Network Sales growth driven by CCB sales 741 NETWORK SALES offsetting the impact of prior year outlet closures and price competition in the QSR segment. H2 accelerated with 2.4% growth and DOMESTIC TRADING OUTLETS UP 0.3% ON PCP, DRI
Slide 17: Café, Coffee, Bakery ('CCB') performed strongly
FY24 FINANCIAL RESULTS| AUGUST 2024 Café, Coffee, Bakery (‘CCB’) performed strongly $359m $322m • CCB contributes c. 71% of group network sales with higher revenue conversion due to vertical DOMESTIC NETWORK SALES SAME STORE SALES2 integration of coffee and pie manufacturing and UP 3.0% ON PCP UP 4.
Slide 18: Café, Coffee, Bakery ('CCB')
FY24 FINANCIAL RESULTS| AUGUST 2024 Café, Coffee, Bakery (‘CCB’) Network Sales1: Café, Coffee, Bakery • Resilient trading through a tougher macro environment. Customer count impacted by prior year outlet closures and lower mall foot traffic • Maximised sales opportunity during seasonal peaks, e.g. s
Slide 19: Quick Service Restaurants ('QSR') remains challenged
FY24 FINANCIAL RESULTS| AUGUST 2024 Quick Service Restaurants (‘QSR’) remains challenged • QSR contributed 29% of group network sales with no $144.1m $134.4m vertical integration of product sales into the network and only 6 Company Store operated outlets (2.4% of QSR DOMESTIC NETWORK SALES SAME STOR
Slide 20: Quick Service Restaurants ('QSR')
FY24 FINANCIAL RESULTS| AUGUST 2024 Quick Service Restaurants (‘QSR’) Network Sales1: Quick Service Restaurants (‘QSR’) • Customer count impacted by competitor discounting throughout FY24 • Same Store Sales2 down $14.4 million in pizza brands offset by $5.3 million of sales growth through Rack’em Bo
Slide 21: Income Statement
FY24 FINANCIAL RESULTS| AUGUST 2024 Income Statement • Underlying Revenue1 increased 12.9% on PCP with a larger corporate store UNDERLYING CONSOLIDATED INCOME STATEMENT portfolio and the acquisition of Beefy's offsetting lower franchise fees Change • Underlying EBITDA2 of $29.2m up 15.0% on PCP and
Slide 22: Reported vs underlying results
FY24 FINANCIAL RESULTS| AUGUST 2024 Reported vs underlying results • Underlying Revenue excludes marketing fund movements and the USA operations whilst these operations are restructured. • Underlying EBITDA excludes non-recurring costs of transformation, $6.3m acquisitions and legacy legal matters,
Slide 23: Financial Position
FY24 FINANCIAL RESULTS| AUGUST 2024 Financial Position CONSOLIDATED BALANCE SHEET $millions FY23 FY24 CURRENT ASSETS Cash and cash equivalents 22.3 20.6 Trade receivables 11.1 11.0 • Cash reserves of $20.6m includes $18.3m of unrestricted cash Inventories 3.7 3.9 Lease receivables 19.3 22.5 (FY23: $
Slide 24: Cash Flow
FY24 FINANCIAL RESULTS| AUGUST 2024 Cash Flow $millions FY23 FY24 $22.5m 77% UNDERLYING CASHFLOW FROM OPERATING ACTIVITIES 11.6 22.5 Operating cashflows not included in underlying (11.4) (4.7) UNDERLYING OPERATING CASH UNDERLYING EBITDA TO CASHFLOW FROM OPERATING ACTIVITIES 0.2 17.8 INFLOWS, UP 95%
Slide 25: Q&A
FY24 FINANCIAL RESULTS| AUGUST 2024 Q&A 24
Slide 26: Glossary
FY24 FINANCIAL RESULTS| AUGUST 2024 GLOSSARY 3PA Third party aggregator GJDT Gloria Jean's Drive Thru Four In relation to company stores, EBITDA excluding overhead costs of the Mobile Mobile Van Wall corporate management time, inclusive of marketing levies payable to EBITDA marketing funds ATV Avera
Slide 27: Disclaimer
FY24 FINANCIAL RESULTS| AUGUST 2024 Disclaimer This Presentation contains summary information about the current activities of Retail Food Group Limited ACN 106 840 082 and its subsidiaries (RFG, the Company or Group) as at the date of this Presentation, unless otherwise stated. The information in th