Retail Food Group Limited · ASX:RFG
Retail Food — Merger or Acquisition (November 2023)
10 slides from Retail Food's merger presentation, Nov 30, 2023
Slide 1: $2.5 million EBITDA, immediate organic outlet growth
$2.5 million Immediate organic EBITDA outlet growth FY24 pro forma full year opportunities Implied 4.0x Expands company store Forward pro forma division by EBITDA multiple 9 retail outlets Vertically integrated pie & cake manufacturing 1
Slide 2: We welcome Beefy's to the Group
We welcome Beefy’s to the Group https://youtu.be/WscMpGEQFLg 2
Slide 3: Acquisition of Beefy's Pies
Acquisition of Beefy’s Pies Transaction Details • RFG has signed an agreement to purchase the trade & assets of Beefy’s Pies (‘Beefy’s’) including the share capital of Beefy’s Pty Ltd which owns the Intellectual Property for total consideration of $10 million (‘Acquisition’). Total consideration inc
Slide 4: Acquisition of Beefy's Pies
Acquisition of Beefy’s Pies Acquisition • Total consideration of $10 million • Upfront cash payment of $5.5 million consideration • 33,333,333 RFG shares ($2.0 million) to be issued to the vendors at 6.0c / share (calculated at a 10 day VWAP to 28 November) following the completion of conditions sub
Slide 5: Beefy's at a glance
Beefy’s at a glance • Established in 19971, BEEFY’S is a family owned business who strive on making great quality products $16.4m FY23 REVENUE • Key products are manufactured in house at (UP 14.5% ON FY22) their factory on the Sunshine Coast. Vertical integration of manufacturing ensures they delive
Slide 6: Key Investment Highlights
Key Investment Highlights Reliable earnings profile and forecast Economies of Scale growth in existing store network. RFG can deploy our existing systems, e.g. Beefy’s is forecast to generate Revenue of approximately in leasing, procurement and technology $18 million and EBITDA of $2.5 million in FY
Slide 7: Customer Research
Customer Research Beefy’s is well known and loved in its Sunshine Coast heartland 73% of Beefy’s customers are either likely or very likely to return to Beefy’s in the future (versus 42% for a competitor). In the Sunshine Coast LGA, prompted brand 75% of Beefy’s customers are either likely or very l
Slide 8: Financial Summary
Financial Summary FY22 to FY24 (estimated) Beefy's Revenue 19 FY22 FY23 FY24 18 (estimate) 17 16 Revenue $14,319 $16,401 $18,367 15 14 Revenue ($'m) Gross Profit $ 8,003 $ 9,100 $10,286 13 Gross Margin 55.9% 55.5% 56.0% 12 11 10 Labor (3,698) (4,283) (4,775) FY22 FY23 FY24 Labor as % of Net Revenues
Slide 9: Acquisition Financing
Acquisition Financing CONSIDERATION ELEMENT TIMING RFG FINANCING Financed by cash on hand supported Upfront Cash December 2023 dependent upon the completion by a $20 million Facility B extension $5.5 million of various conditions precedent to the transaction to RFG debt facility borrowed from Washin
Slide 10: $20m undrawn Facility B Extension to Debt Funding
$20m undrawn Facility B Extension to Debt Funding • RFG continues to enjoy debt financing support from Washington H. Soul Pattinson (‘WHSP’) • WHSP remain a significant shareholder in RFG and provide our debt financing • RFG agreed a Facility A debt facility of $20 million with WHSP in April 2023 wh
Retail Food Group — Merger or Acquisition (November 2023) on 6ix