Retail Food Group Limited · ASX:RFG
Retail Food — H1 2025 Earnings Presentation
33 slides from Retail Food's earnings presentation, Feb 19, 2025
Slide 1: 1H25 Results Presentation
Retail Food Group Limited Level 4, 35 Robina Town Centre Drive Robina Qld 4226 19 February 2025 1H25 Results Presentation Please find enclosed for release to the market Retail Food Group Limited’s 1H25 Results Presentation. This announcement has been authorised for release by the Board of Directors.
Slide 2: 2025 Interim Financial Results
Slide 3: Financial Results Agenda
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Financial Results Agenda 1. Business update 2. Interim financial performance 3. Q&A Matt Marshall Chief Executive Officer Results Webinar Wednesday 19 February 10:00am AEDT Conference call: https://s1.c-conf.com/diamondpass/10045327-5laeu6.html Webinar: https://
Slide 4: RFG continued to enhance our network and deliver growth
RFG continued to enhance our network and deliver growth in the first half. Today we announce a major new brand launch 3
Slide 5: Continuing To Deliver Growth In 1H25
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Continuing To Deliver Growth In 1H25 750 $66.5m DOMESTIC TRADING OUTLETS2 UP 9 ON 30 JUNE UNDERLYING REVENUE UP 24.7% ON PCP 25 $16.0m NEW DOMESTIC TRADING OUTLETS OPENED1 UNDERLYING EBITDA UP 4.2% ON PCP $257.1m $7.3m DOMESTIC NETWORK SALES UP 0.9% ON PCP DRIVE
Slide 6: Key Takeaways
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Key Takeaways Continuing to Network Health Delivering on Deliver Growth Improved New Strategy • Network Sales Growth of +0.9% on • Average Weekly Sales1 up +3.4% on PCP • Signed key new growth driver – PCP despite weak retail environment Firehouse Subs following
Slide 7: About Retail Food Group
1H25 FINANCIAL RESULTS| FEBRUARY 2025 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 ownersh
Slide 8: Our Core Brands
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Our Core Brands 203 7.9m 136 5.3m 75 3.9m 12 0.6m 135 1.4m 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 – 26 of FY25 for domestic
Slide 9: Firehouse Subs: Flavour Is Our Mission
1H25 FINANCIAL RESULTS| FEBRUARY 2025 1300+ RESTAURANTS AROUND THE WORLD COMING SOON IN AUSTRALIA FLAVOUR IS OUR MISSION 8
Slide 10: Our Purpose, Vision and Values
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Our Purpose, Vision and Values By putting the customer at the heart of our strategy, we have a clear framework for success OUR PURPOSE OUR VISION OUR VALUES We strive for a positive customer Our vision is to be the most accessible, easy to operate, experience in
Slide 11: Strategic Growth Outlook
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Strategic Growth Outlook GROW ENHANCE Established systems and improved International expansion of Gloria network health as a platform for Jean’s and Donut King growth Beefy’s Pies outlet growth target to Building strength and scale in core 50+ stores in three ye
Slide 12: Delivering Our Growth Initiatives
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Delivering Our Growth Initiatives Continuing to strengthen and enhance our core business whilst delivering on new growth inititaitves ENHANCE GROW Achieved In Progress Achieved In Progress • Enhanced systems and • Investment in new Apps • Beefy’s integration • I
Slide 13: Enhance Our Network
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance Our Network A customer led approach to building scale and relevance in our core brands CUSTOMER-LED STORE OF THE FUTURE INNOVATION • Modern brand design with a cost-conscious approach • 3-year consumer-tested rolling • Refurbishment pipeline to enhance b
Slide 14: Enhance: Product Innovation
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Product Innovation Customer led insights driving a 3-year pipeline of product innovation • Sides menu Refresh • New Valentine’s Day – Donut King Occasions • Lunch launch – Piadinas • New premium indulgence donuts in 1H25 • New High-Protein bases launchi
Slide 15: Enhance: Store Of The Future
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Store Of The Future Gloria Jean’s case study: refreshed brand positioning and simplified operations to attract a new growth customer • Positioning Gloria Jean’s as a unique beverage destination 28 • • Technology integration in store and online Cost cons
Slide 16: Enhance: Network Health
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Network Health Ongoing cost management and focus on the quality of the network LANDLORD ENGAGEMENT FRANCHISE RECRUITMENT • Average lease increase of 2.7% on annual rent • Lead generation increase of 24.6% in 1H25 vs across 55 renewals to the end of Janu
Slide 17: Enhance: Technology
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Technology Investment to seamless customer experience across channels and unlock new revenue streams ENHANCED EXPERIENCE IN STORE DIGITAL • Increased personalisation • Gloria Jean’s, Beefy’s and content across our platforms to Donut King kiosks launched
Slide 18: Grow: Beefy's
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Grow: Beefy’s 3 new stores delivered since acquisition, on track for 15 by 30 June and with a new goal of 50 stores by 2028 $32.1k 1H25 AVERAGE WEEKLY SALES Cannon Hill, Brisbane 12 TRADING OUTLETS UP FROM 9 Newtown, Toowoomba ON ACQUISITION IN DEC 2023 2 Beefy’
Slide 19: Grow: International
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Grow: International Significant international growth opportunity for Gloria Jean’s and Donut King • Our Master Franchise Partner (‘MFP’) in Turkey is growing by approximately 40 stores annually • Global Supply Chain transformation underway including new supply h
Slide 20: Grow: Firehouse Subs
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Grow: Firehouse Subs Signed an exclusive 20-year agreement for FHS in Australia, with 165 stores within 10 years 01 04 WE EXPECT TO OPEN THE FIRST RESTAURANT IN LATE 20 YEAR TERM WITH EARLY EXIT OPTIONS 2025 RFG has agreed a 20 year development term, inclusive o
Slide 21: 1H25 Financial Results
1H25 FINANCIAL RESULTS| FEBRUARY 2025 1H25 Financial Results 750 $66.5m • Network Sales growth driven by CCB core brands and offset weaker QSR trading. DOMESTIC TRADING OUTLETS (1) UNDERLYING REVENUE UP 9 SINCE 30 JUNE UP 24.7% ON PCP • The loss of 17 low performing core outlets and 15 non-core outl
Slide 22: Café, Coffee, Bakery (CCB) Performed Strongly
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Café, Coffee, Bakery (CCB) Performed Strongly • CCB contributes c. 72.8% of group network sales $187.2m $165.1m with higher revenue conversion due to vertical integration of coffee and pie manufacturing and DOMESTIC NETWORK SALES SAME STORE SALES2 a higher % of
Slide 23: Café, Coffee, Bakery ('CCB')
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Café, Coffee, Bakery (‘CCB’) • The Black Friday and Cyber Monday period saw Network Sales: Café, Coffee, Bakery SSS up 2% on PCP2 • Maximised sales opportunity during seasonal peak over the Christmas holidays despite weaker retail conditions • Core brands contin
Slide 24: CIBO Update
1H25 FINANCIAL RESULTS| FEBRUARY 2025 CIBO Update • CIBO Espresso is a boutique coffee franchise founded in Adelaide over 23 years ago • We acquired CIBO Espresso to accelerate our $2.7m growth in South Australia and gain immediate ACQUISITION access to 22 retail locations including 4 company CONSID
Slide 25: Quick Service Restaurants ('QSR') Remains Challenged
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Quick Service Restaurants (‘QSR’) Remains Challenged • QSR contributed 27.2% of group network sales with no vertical integration of product sales into the network and $69.9m $66.5m only 6 Company Store operated outlets (2.3% of QSR outlets) resulting in a lower
Slide 26: Quick Service Restaurants ('QSR')
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Quick Service Restaurants (‘QSR’) Network Sales1: Quick Service Restaurants (‘QSR’) • Stable outlet count in pizza brands (Crust up 2, Pizza Capers down 3, Rack’em Bones outlets up 11) • Maximised the sales opportunity during large sporting events with Network S
Slide 27: Income Statement
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Income Statement UNDERLYING CONSOLIDATED INCOME STATEMENT Change • Underlying Revenue1 increased 24.7% on PCP with a larger corporate store $millions 1H24 2H24 1H25 1H24 vs 1H25 portfolio and the acquisition of Beefy’s Pies offsetting lower franchise fees NETWOR
Slide 28: Reported vs Underlying Results
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Reported vs Underlying Results • Underlying Revenue excludes restricted domestic marketing fund revenues. • Underlying EBITDA excludes restricted domestic marketing funds, costs associated with M&A activity and is inclusive of AASB15 and AASB16 • Phase 1 of the
Slide 29: Financial Position
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Financial Position CONSOLIDATED BALANCE SHEET $millions $millions 1H24 FY24 FY23 1H25 FY24 CURRENT ASSETS CURRENT ASSETS • Cash reserves of $21.4m (FY24: $20.6m) includes $17.7m of Cash and cash equivalents 22.3 20.621.4 Cash and cash equivalents 20.9 20.6 unres
Slide 30: Cash Flow
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Cash Flow 1H24 2H24 1H25 $millions $9.8m 61% (6m) (6m) (6m) UNDERLYING CASHFLOW FROM OPERATING ACTIVITIES 12.1 10.4 9.8 Operating cashflows not included in underlying (2.0) (2.7) 2.0 UNDERLYING OPERATING CASH UNDERLYING EBITDA TO INFLOWS, DOWN 19% ON PCP UNDERLY
Slide 31: Q&A
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Q&A 30
Slide 32: Glossary
1H25 FINANCIAL RESULTS| FEBRUARY 2025 Glossary 3PA Third party aggregator GJDT Gloria Jean's Drive Thru Four In relation to company stores, EBITDA excluding overhead costs Mobile Mobile Van Wall of the corporate management time, inclusive of marketing EBITDA levies payable to marketing funds ATV Ave
Slide 33: Disclaimer
1H25 FINANCIAL RESULTS| FEBRUARY 2025 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