Retail Food Group Limited · ASX:RFG
Retail Food — FY2022 Earnings Presentation
29 slides from Retail Food's earnings presentation, Aug 24, 2022
Slide 1: FY22 Results Presentation
For personal use only FY22 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, the Company or Group) and its subsidiaries as at the date of this Presentation, unless otherwise stated. The information in this Presentation is of a general natu
Slide 3: Snapshot: Demonstrable Momentum & Platform for Growth
SNAPSHOT DEMONSTRABLE MOMENTUM & PLATFORM FOR GROWTH > Numerous positive indicators in FY22 performance observed: > Contributed to FY22 Underlying EBITDA(2) of $21.5 million (FY21: For personal use only $26.9 million): • Strong operational performances across QSR Division (+10.1% SSS), Gloria Jean’s
Slide 4: Snapshot (Continued): Turnaround Journey Further Advanced
SNAPSHOT (CONTINUED) TURNAROUND JOURNEY FURTHER ADVANCED: STRONG START TO FY23: • Underscored by ‘franchisee first’ philosophy & driving improved Franchise • Momentum amongst domestic network sustained during FY23YTD, For personal use only Partner outcomes: despite barriers to optimal trading: • Foc
Slide 5: Domestic Network Metrics
DOMESTIC NETWORK METRICS For personal use only > FY22 network performance broadly reflects distinct periods: • Significant 1H22 impact of Delta related lockdowns, border closures & other FY22 1H22 2H22 measures: • All States/Territories subject to lockdowns of various degrees/timeframes Average Tran
Slide 6: Coffee Brand Customer Count
COFFEE BRAND CUSTOMER COUNT For personal use only COVID-19’s Impact on Coffee Brand System Customer Count FY22 – FY23YTD > Coffee Brand Systems’ Customer Count since pandemic onset reflects: (excluding Gloria Jean’s Drive Thru)(1)(2) • Significant declines during heightened COVID-19 transmission per
Slide 7: Strong ATV Growth Maintained
STRONG ATV GROWTH MAINTAINED > Constant investment in marketing, product innovation & consumer engagement: For personal use only • c.120 campaigns/product launches across all Brand Systems during FY22: • Emphasis on driving additional revenues at store level • Focused on new product development & le
Slide 8: Engaging New Audiences & Customers
ENGAGING NEW AUDIENCES & CUSTOMERS > Implementation of innovative new product development, market activation & consumer engagement strategies targeting: • New customer audiences • Enhanced brand relevance For personal use only • Increased engagement via digital platforms • Evolving consumer expectat
Slide 9: Network Population
NETWORK POPULATION • Focus on domestic network development & support: For personal use only • >80 existing store transfers (25) & renewals (58): Donut King Mt Gravatt Opened May 22 – average weekly • Demonstrates ongoing relevance/attraction of brands/franchise offer customer count is +7.9% vs • Ren
Slide 10: FY22 Performance Summary
For personal use only FY22 PERFORMANCE SUMMARY
Slide 11: Group Performance and FY22 Performance Summary
GROUP PERFORMANCE(1) FY22 FY21 % Change FY22 PERFORMANCE SUMMARY For personal use only Revenue(2) $111.8m $142.3m (21.4%) > FY22 underlying EBITDA(1) of $21.5 million (FY21: $26.9 million): • Reflects 7.6% decrease on PCP when effect of FY21 government support Revenue - continuing operations $111.8m
Slide 12: Reconciliation of Underlying to Statutory Results
RECONCILIATION OF UNDERLYING TO STATUTORY RESULTS FY22 UNDERLYING STATUTORY For personal use only > $10.9 million non-core expenditure in continuing operations from restructuring EBITDA $21.5m $17.3m activities & provisioning, comprising: NPAT $18.5m $5.3m • Advisory costs in connection with restruc
Slide 13: EBITDA Performance by Division to PCP
EBITDA PERFORMANCE BY DIVISION TO PCP For personal use only % Change (Excl. > FY22 Underlying EBITDA divisional results attributable to: UNDERLYING EBITDA(1) FY22 FY21 % Change Covid Govt • Absence of $3.7m in Government support (JobKeeper & similar) received during assitance) FY21(7) Bakery / Café
Slide 14: Cash Flows
CASH FLOWS CASH FLOW STATEMENT FY22 ($m) FY21 ($m) Receipts from Customers 110.1 142.8 > Decrease in cash receipts from customers & payments to suppliers & Payments to Suppliers & Employees (81.3) (111.9) For personal use only employees consistent with: • FY21 disposal of high-volume/low-margin non-
Slide 15: Balance Sheet at Jul 2022
BALANCE SHEET AT 1 JUL 2022 FY22 ($m) FY21 ($m) BALANCE SHEET Assets > Increased net assets arising from the Statutory NPAT result achieved in FY22 For personal use only Cash Reserves 29.2 34.6 > Movements in lease receivables & lease liabilities during the period reflect: Trade Receivables 7.7 7.1
Slide 16: Debt Structure
DEBT STRUCTURE Gross debt $40.9 million For personal use only > Fully compliant with all covenants as of 1 July 2022 Net debt at 1 July 2022 (1) $18.6 million > Borrowings decreased by $7.5 million during period, following FY22 programmed repayments Covenant compliance Fully compliant with all lendi
Slide 17: FY22 Divisional Performance
For personal use only FY22 DIVISIONAL PERFORMANCE
Slide 18: Domestic Bakery / Café Division
DOMESTIC BAKERY / CAFÉ DIVISION FY22 FY21 % Change > FY22 performance influenced by: New Outlets 6 11 • Sustained growth across key Brumby’s operational metrics: Closures (52) (48) For personal use only • SSS +1.4% / ATV +3.2% vs PCP • Reflects +12.4% SSS & +14.8% ATV vs pre-COVID FY19 performance O
Slide 19: Domestic Coffee Retail Division
DOMESTIC COFFEE RETAIL DIVISION FY22 FY21 % Change New Outlets - 5 > FY22 performance influenced by: • Strong performance amongst Gloria Jean’s Drive Thru outlets vs PCP: Closures (49) (34) For personal use only • +11.3% SSS growth vs -2.2% for entire Brand System Outlets at EOFY (1) 182 204 (10.8%)
Slide 20: Domestic QSR Division
DOMESTIC QSR DIVISION FY22 FY21 % Change New Outlets 3 1 > Performance underpinned by strong FY22 metrics at store level vs PCP: • Crust: SSS +10.6%, CC +8.4%, ATV +2.0% Closures (11) (16) For personal use only • Pizza Capers: SSS +6.4%, CC +4.2%, ATV +2.2% Outlets at EOFY (1) 172 180 (4.4%) > Susta
Slide 21: International Franchising Division
INTERNATIONAL FRANCHISING DIVISION(1) FY22 FY21 % Change > 35.5% increase in Underlying EBITDA vs PCP influenced by: New Master Franchise Agreements 2 - For personal use only • Improved trading conditions across majority of international territories(2) New Outlets 77 43 • Positive benefit delivered
Slide 22: Di Bella Coffee (DBC)
DI BELLA COFFEE (DBC) FY22 FY21 % Change > FY22 divisional performance influenced by: External Revenue $6.3m $16.3m (61.4%) For personal use only • Reduced revenues attributable to: EBITDA Underlying(1)(2) $1.2m $1.2m 2.0% • Exit from certain low-margin supermarket supply contracts (1) Underlying EB
Slide 23: FY23 Focus & Outlook
For personal use only FY23 FOCUS & OUTLOOK
Slide 24: FY23 Focus: Roadmap for Sustainable Growth
FY23 FOCUS ROADMAP FOR SUSTAINABLE GROWTH 5 BIG PLAYS > Four core principles underpin future roadmap: > A series of priority initiatives & focus areas stand behind each ‘Big Play’: For personal use only • Franchisee first • Effective Franchise Operations: A relentless focus on enhancing operational
Slide 25: FY23 Focus Continued: Over-arching Strategic Themes
FY23 FOCUS CONTINUED OVER-ARCHING STRATEGIC THEMES > Effective Franchise Operations: > Realising Profitability: • Continue to grow ATV via new product development, effective For personal use only • Brand execution standards, food safety & enhancing instore systems marketing & multi-buy strategies •
Slide 26: Building a More Sustainable Business
Building a More Sustainable Business Some of the Initiatives > RFG recognises the importance of implementing sustainable strategies to Underway or Taken to equitably meet business needs & is motivated to better preserve & Date protect the ecosystem, natural resources, people & communities For person
Slide 27: Outlook
OUTLOOK > COVID-19’s unavoidable impact was demonstrated by FY22 results, > Brand Systems & broader business positioned to respond to improving however, considerable positive momentum was achieved during the trading conditions: 2H22: For personal use only • Turnaround journey considerably advanced •
Slide 28: Appendix
For personal use only APPENDIX
Slide 29: Definitions
Definitions 3PA Third Party Aggregator For personal use only ATV Average Transaction Value AWS Average Weekly Sales BCD Bakery/Café Division: Donut King; Michel’s Patisserie; Brumby’s Bakery CC Customer Count COGS Cost of Goods Sold CRD Coffee Retail Division: Gloria Jean’s; Cafe2U; The Coffee Guy;