Retail Food Group Limited · ASX:RFG
Retail Food — H1 2021 Earnings Presentation
23 slides from Retail Food's earnings presentation, Feb 24, 2021
Slide 1: 1H21 Results Presentation
RETAIL FOOD | GROUP 1H21 RESULTS PRESENTATION
Slide 2: Disclaimer
DISCLAIMER This Presentation contains summary information about the current activities of Retail Food Group Limited ACN 106 840 082 (RFG) and its subsidiaries as at the date of this Presentation, unless otherwise stated. The information in this Presentation is of a general nature and does not purpor
Slide 3: 1H21 Snapshot
1H21 SNAPSHOT CREDITABLE RESULT IN CHALLENGING COVID-19 CIRCUMSTANCES: • Challenging trading conditions throughout 1H21 produced mixed results across the Group’s operations • A number of positive indicators observed across the Group’s business, particularly amongst: • Brumby’s Bakery & QSR Division
Slide 4: 1H21 Snapshot (Continued)
1H21 SNAPSHOT (CONTINUED) COVID-19: • Influenced all aspects of Group operations: • Strong demand for Brumby’s Bakery staple bakery offer & QSR home delivery options: • Brumby’s Bakery standout performer: 1H21 SSS of +11.7%(1) • Strong QSR results accelerated by launch of new Crust value model: 1H21
Slide 5: 1H21 Snapshot (Continued)
1H21 SNAPSHOT (CONTINUED) TURNAROUND ACTIVITY ONGOING: WELL POSITIONED BUT ONGOING CHALLENGES/UNCERTAINTY REMAIN: • Underpinned by ‘franchisee first’ culture focused on driving improved • Considerable progress on turnaround achieved to date: franchise partner outcomes • Delivered on various commitme
Slide 6: 1H21 Performance Summary
RETAIL FOOD | GROUP 1H21 PERFORMANCE SUMMARY
Slide 7: 1H21 Performance Summary
GROUP PERFORMANCE(1) 1H21 1H20(5) % Change 1H21 PERFORMANCE SUMMARY Revenue(2) $85.1m $179.0m (52.4%) > 1H21 Underlying EBITDA(1) of $14.4 million EBITDA (underlying) $14.4m $19.9m (27.8%) > Statutory NPAT of $3.9 million (1H20: $13.9 million(5)), includes contribution from EBITDA (statutory) $12.2m
Slide 8: Reconciliation of Underlying to Statutory Results
RECONCILIATION OF UNDERLYING TO STATUTORY RESULTS 1H21 UNDERLYING STATUTORY EBITDA $14.4m $12.2m > Discontinued operations & disposal cost includes: NPAT $12.0m $3.9m • $1.8 million underlying EBITDA relating to trading operations prior to sale • Offset by $5.0 million of losses & costs incurred as
Slide 9: EBITDA Performance by Division to PCP
UNDERLYING EBITDA(1) 1H21 1H20(7) % Change EBITDA PERFORMANCE BY DIVISION TO PCP Bakery / Café Division(2) $6.2m $7.9m (21.3%) > 1H21 Underlying EBITDA divisional results attributable to: (3) Coffee Retail Division $3.7m $4.0m (8.2%) • Franchise Operations: (4) QSR $3.3m $3.7m (11.2%) • Influence of
Slide 10: Cash Flows
CASH FLOWS CASH FLOW STATEMENT 1H21 ($m) 1H20 ($m) Receipts from Customers 93.2 175.7 > Net cash inflows were attributable to a return to more normalised operations Payments to Suppliers & Employees (75.4) (150.8) in 1H21, whereas 1H20 included significant supplier payments made by the Group in rela
Slide 11: Balance Sheet
BALANCE SHEET AT 31 DEC 2020 1H21 ($m) FY20 ($m) BALANCE SHEET Assets > Disposal of discontinued operation Dairy Country has resulted in a significant Cash Reserves 43.1 40.2 decrease in trade receivables, inventories, plant & equipment, intangibles, other Trade Receivables 9.2 20.1 assets, trade pa
Slide 12: Debt Structure
DEBT STRUCTURE Gross debt $52.6 million > Fully compliant with all covenants as at 31 December 2020 Current Facility Headroom $34.2 million > Senior Debt Facilities tenor – Nov 2022 Net Debt at 31 December 2020 (1) $27.6 million > Borrowings decreased upon repayment of debt during the period Covenan
Slide 13: 1H21 Divisional Performance
1H21 DIVISIONAL PERFORMANCE
Slide 14: Domestic Bakery / Café Division
1H21 1H20 % Change DOMESTIC BAKERY / CAFÉ DIVISION New Outlets 3 - Closures (33) (49) > 1H21 performance influenced by: Outlets at 31 December(1) 460 535 (14.0%) • Unavoidable impact of COVID-19 & government restrictions in response thereto: Same Store Sales (SSS)(2) (4.3%) (1.7%) • Brand Systems pr
Slide 15: Domestic Coffee Retail Division
1H21 1H20 % Change DOMESTIC COFFEE RETAIL DIVISION New Outlets - - > 1H21 divisional performance influenced by: Closures (29) (23) • Temporary reduction of brand marketing initiatives following rechannelled financial support to franchise partners during COVID-19 lockdowns Outlets at 31 December(1) 2
Slide 16: Domestic QSR Division
DOMESTIC QSR DIVISION 1H21 1H20 % Change New Outlets 1 - > 1H21 divisional performance influenced by: Closures (18) (11) • Implementation of new Crust value model following successful FY20 trial: • Lower price point range & value bundling Outlets at 31 December(1) 178 205 (13.2%) • Targets wider con
Slide 17: International Franchising Division
INTERNATIONAL FRANCHISING DIVISION (1) 1H21 1H20 % Change New Master Franchise Agreements - 1 > 1H21 performance influenced by: New Outlets 27 40 • Reduction in Trading Revenues reflects ongoing COVID-19 impact & reduced outlet portfolio – as at 31 December 2020(2): Outlets at 31 December(2) 604 667
Slide 18: Di Bella Coffee (DBC)
DI BELLA COFFEE (DBC) 1H21 1H20 % Change External Revenue $8.8m $14.2m (37.9%) > 1H21 divisional performance influenced by: • Negative COVID-19 impact on independent cafe/contract roasting customer EBITDA Underlying(1)(2) $0.8m $1.5m (43.2%) volumes, particularly where CBD based (closures, restricte
Slide 19: 2H21 Focus & Outlook
RETAIL FOOD | GROUP 2H21 FOCUS & OUTLOOK
Slide 20: 2H21 Focus
2H21 FOCUS > Unwavering commitment to supporting franchisee community • Maintaining aggressive campaign activity to drive category growth • Leverage new customer Loyalty Programs & social media to drive frequency & engagement • Menu enhancement & introduction of new products • Driving supply chain o
Slide 21: Outlook
OUTLOOK > Significant progress on turnaround achieved to date • Delivered on commitments to key stakeholders throughout turnaround journey, including: • Adoption of new strategic roadmap focused on core franchise/coffee business • 1H20 recapitalisation of the Group • Substantially improved marketing
Slide 22: Appendix
RETAIL FOOD | GROUP APPENDIX
Slide 23: Definitions
Definitions B2C Business-to-Consumer BCD Bakery/Café Division: Donut King; Michel’s Patisserie; Brumby’s Bakery COGS Cost of Goods Sold CRD Coffee Retail Division: Gloria Jean’s; Cafe2U; The Coffee Guy; It’s A Grind; bb’s Café; Esquires Coffee DBC Di Bella Coffee Division: Franchise supply; specialt