Retail Food Group Limited · ASX:RFG
Retail Food — FY2021 Earnings Presentation
27 slides from Retail Food's earnings presentation, Aug 25, 2021
Slide 1: FY21 Results Presentation
For personal use only FY21 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: FY21 Snapshot
FY21 SNAPSHOT CREDITABLE RESULT IN CHALLENGING COVID-19 CIRCUMSTANCES: For personal use only • Respectable outcomes across Group’s operations a product of challenging trading conditions throughout FY21 • Numerous positive indicators observed, particularly amongst: • QSR Division & Brumby’s Bakery •
Slide 4: FY21 Snapshot (Continued)
FY21 SNAPSHOT (CONTINUED) POSITIVE INDICATORS DESPITE COVID-19: POSITIVE INDICATORS DESPITE COVID-19 (CONT’): For personal use only • Same Store Sales (SSS) across domestic network up 3.2% on PCP(1) despite • Strong International network new outlet growth of 43 outlets unavoidable COVID-19 influence
Slide 5: FY21 Snapshot (Continued)
FY21 SNAPSHOT (CONTINUED) TURNAROUND ACTIVITY ONGOING: WELL POSITIONED BUT ONGOING CHALLENGES/UNCERTAINTY REMAIN: For personal use only • Focused on core franchise & coffee business: • Considerable progress on turnaround achieved to date: • Ongoing investment in systems, brands & people guided by: •
Slide 6: FY21 Performance Summary
For personal use only FY21 PERFORMANCE SUMMARY
Slide 7: Group Performance and FY21 Performance Summary
GROUP PERFORMANCE(1) FY21 FY20(5) % Change FY21 PERFORMANCE SUMMARY For personal use only Revenue(2) $142.3m $264.0m (46.1%) > FY21 Underlying EBITDA(1) of $26.9 million EBITDA (underlying) $26.9m $31.7m (15.0%) • Translated to FY21 Underlying NPAT (1) of $23.2 million (+23.3% on PCP) EBITDA (statut
Slide 8: Reconciliation of Underlying to Statutory Results
RECONCILIATION OF UNDERLYING TO STATUTORY RESULTS FY21 UNDERLYING STATUTORY For personal use only > Discontinued operations & disposal cost includes: EBITDA $26.9m $16.6m • $2.2 million underlying EBITDA relating to trading operations prior to sale NPAT $23.2m $1.5m • Offset by $6.6 million of non-c
Slide 9: Underlying EBITDA by Division
UNDERLYING EBITDA(1) FY21 FY20(7) % Change EBITDA PERFORMANCE BY DIVISION TO PCP For personal use only Bakery / Café Division(2) $11.1m $12.8m (12.6%) > FY21 Underlying EBITDA divisional results attributable to: Coffee Retail Division(3) $6.1m $5.7m 7.0% • Franchise Operations: (4) QSR $6.1m $7.2m (
Slide 10: Cash Flows
CASH FLOWS CASH FLOW STATEMENT FY21 ($m) FY20 ($m) Receipts from Customers 142.8 319.6 > Decrease in cash receipts from customers and payment to suppliers & For personal use only employees consistent with: Payments to Suppliers & Employees (111.9) (280.6) • Disposal of high-volume/low-margin non-cor
Slide 11: Balance Sheet at July 2021
BALANCE SHEET AT 2 JUL 2021 FY21 ($m) FY20 ($m) BALANCE SHEET Assets > Disposal of discontinued operation Dairy Country in FY21 has resulted in a For personal use only Cash Reserves 34.6 40.2 significant decrease in trade receivables, inventories, plant & equipment, Trade Receivables 7.1 20.1 intang
Slide 12: Debt Structure
DEBT STRUCTURE Gross debt $48.2 million For personal use only > Fully compliant with all covenants as of 2 July 2021 Net Debt at 2 July 2021 (1) $23.2 million > Senior Debt Facilities tenor - Nov 2022 Covenant compliance Fully compliant with all lending covenants > Borrowings decreased upon repaymen
Slide 13: FY21 Divisional Performance
For personal use only FY21 DIVISIONAL PERFORMANCE
Slide 14: Strong Customer Engagement Driving Positive Outcomes
STRONG CUSTOMER ENGAGEMENT DRIVING POSITIVE OUTCOMES > Successfully executed on targeted incremental Average Transaction Value (ATV) & Same Store Sales (SSS) growth despite COVID-19 driven Customer Count decline (-2.4%(1)) FY21 ATV FY21 SSS For personal use only > c.100 campaigns/product launches co
Slide 15: Introduction of New Loyalty Programs Driving Promising Results
INTRODUCTION OF NEW LOYALTY PROGRAMS DRIVING PROMISING RESULTS > Rollout of new loyalty programs now complete: • Drives frequency & engagement • Provides platform for direct communication For personal use only • Simple platform encourages use • Enhances Brand System data • Launched Dec 2020 • Re-lau
Slide 16: Domestic Bakery / Café Division
DOMESTIC BAKERY / CAFÉ DIVISION FY21 FY20 % Change New Outlets 11 - > FY21 divisional performance influenced by: • Strong Brumby’s Bakery performance: Closures (48) (72) For personal use only • Successfully re-engaged with local communities leveraging fresh baked promise & Outlets at EOFY (1) 453 49
Slide 17: Domestic Coffee Retail Division
FY21 FY20 % Change DOMESTIC COFFEE RETAIL DIVISION New Outlets 5 - > Gloria Jean’s FY21 SSS +0.2% vs PCP (-1.8% excluding Drive Thru)(2), however: Closures (34) (56) • +6.6% SSS growth in non-metro regions(2) Outlets at EOFY (1) 204 220 (7.3%) For personal use only • +17.8% SSS growth across Drive T
Slide 18: Domestic QSR Division
DOMESTIC QSR DIVISION FY21 FY20 % Change New Outlets 1 - > Strong divisional SSS growth of +4.3% vs PCP(2): • Crust: +3.2% growth(2) Closures (16) (27) For personal use only • Pizza Capers: +12.4% growth(2) Outlets at EOFY (1) 180 195 (7.7%) > FY21 divisional performance influenced by: Same Store Sa
Slide 19: International Franchising Division
INTERNATIONAL FRANCHISING DIVISION (1) FY21 FY20 % Change New Master Franchise Agreements - 2 > Reduction in Trading Revenues and underlying EBITDA reflects: For personal use only New Outlets 43 55 • Ongoing COVID-19 impact across international network • As at 2 July 2021(2): Outlets at EOFY (2) 590
Slide 20: Di Bella Coffee (DBC)
DI BELLA COFFEE (DBC) FY21 FY20 % Change External Revenue $16.3m $23.0m (29.0%) > FY21 divisional performance influenced by: For personal use only • Positive impact of FY20 & FY21 restructuring activity which drove reduced EBITDA Underlying(1)(2) $1.2m $2.1m (43.8%) operational & overhead cost, offs
Slide 21: FY22 Focus & Outlook
For personal use only FY22 FOCUS & OUTLOOK
Slide 22: FY22 Focus
FY22 FOCUS > Unwavering commitment to supporting franchisee community within > Focus on new outlet growth opportunity: evolving COVID-19 environment: • Nurturing Multi-Store Owner (MSO) franchise partner complement For personal use only • 1H22 launch of new Partnership Program designed to: • Aggress
Slide 23: FY22 Focus – Strategic Growth Drivers
FY22 FOCUS – STRATEGIC GROWTH DRIVERS > FY22 market launch of Donut King van concept: For personal use only • Innovative new concept leveraging iconic brand • Low-cost entry model • Successfully trialled in FY21/launched Aug 22 • Offers existing DK franchise partners scope to expand/complement exist
Slide 24: FY22 Focus – Rollout New Brand Standards
FY22 FOCUS – ROLLOUT NEW BRAND STANDARDS > Rollout of upgraded store concepts/brand standards: • Incorporates fresh/modern store designs • Multi-tiered program responding to specific store requirements & For personal use only franchise partner budget • Focus on reducing implementation costs • Applie
Slide 25: Outlook
OUTLOOK > COVID-19’s unavoidable influence demonstrated by FY21 performance & > Significant progress on turnaround achieved to date: For personal use only 1H22YTD developments: • Delivered on commitments to key stakeholders throughout turnaround • 1H22YTD performance significantly impacted by ‘Delta
Slide 26: Appendix
For personal use only APPENDIX
Slide 27: Definitions
Definitions BCD Bakery/Café Division: Donut King; Michel’s Patisserie; Brumby’s Bakery For personal use only 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; specialty r