Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Retail Food Group Limited Shares fall 7% on 34% HY Profit Drop

The Retail Food Group Limited (ASX:RFG) share price fell another 7% today after the company released a trading update to ASX investors.

The Retail Food Group Limited (ASX: RFG) share price fell another 7% today after the company released a trading update to ASX investors.

Retail Food Group is the owner of fast casual dining and coffee brands such as Donut King, Brumby’s Bakery, Gloria Jeans and Crust Pizza. It leases its brands to store owners using a ‘franchise model’, similar to Domino’s Pizza Enterprises Ltd. (ASX: DMP) and 7Eleven. It also owns a wholesale coffee business, distributing its products to a wide range of local and international customers.

Recently, Retail Food Group has been the subject of scathing allegations of franchisee mistreatment by Fairfax Media Limited (ASX: FXJ). Fairfax reported that many small business owners suffered financial hardship while trying to run their outlets.

Yesterday, Retail Food Group responded to the reports, saying:

“it does not accurately reflect its current business, its proactive efforts to better assure employee entitlement compliance and the levels of support it provides to franchisees.”

However, in an announcement to the ASX today, Retail Food Group provided a financial update to investors citing “recent negative media coverage” and lower franchise revenues as the catalysts for lowering its forecast profit.

“The retail market is expected to remain challenging for the near future and we remain focused on responding to this challenge through delivering franchisee support initiatives and reducing corporate costs,” CEO Andre Nell said.

Profit for the first half of its 2018 financial year is forecast to be $22 million, compared to $33.5 million last year. The 34% drop in profit includes a one-off charge of $7 million for a business review and sale of corporate properties.

Looking ahead, Retail Food Group said it is difficult to forecast its finances for the full financial year, given the current environment. “RFG continues to monitor trading results carefully and will update the market regarding revised full year guidance as appropriate.”

Keep reading

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

5%+ in passive income

Owen Rask’s investing report available

With bond ETFs like ASX:IAF and the S&P 500 riding high, now could be one of the best times to start earning passive income from a portfolio of shares and ETFs.

In this free analyst report, our Chief Investment Officer, Owen Rask, names 10 ASX stocks and ETFs to watch.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Skip to content