RFG Annual Report 2007 - Retail Food Group

OUTLOOK
The 2007 fi nancial year has been outstanding in many respects including but not limited to new store growth, diversifi cation of revenue base,
development of franchisee support systems and Company profi tability. Each of these achievements assist not only in improved outcomes for
franchisees, staff and business partners, but importantly, increased shareholder value.
In FY2008, the Company’s directors, management and staff are committed to the delivery of enhanced outcomes for all stakeholders and remain
strongly focused on driving results in all key performance areas in order to realise continued growth, increased earnings per share and greater
shareholder value.
Supported by a strong FY2007 result as well as positive fi rst quarter FY2008 growth, Retail Food Group remains confi dent of achieving its pre
Michel’s acquisition FY2008 EBIT forecast of approximately $19 million (an increase of 55% on FY2007). When the Michel’s acquisition—which
the Company remains confi dent of completing in the fi rst half of the 2008 fi nancial year—is taken into account, the Company is confi dent of
achieving a FY2008 EBIT increase (on the assumption of a full year contribution to earnings) to approximately $32 million.
Furthermore, the Company’s existing new outlet opening program is advanced and well placed to realise RFG’s forecast FY2008 new outlet
growth of 52 outlets. In terms of new store commissionings for the 2008 fi nancial year, the Company has already identifi ed sites, secured leases
and recruited franchisees for a large proportion of its full year forecast.
Management continues to invest considerable resources in enhancing its fundamental and underlying business drivers, particularly that of
developing and sustaining franchisee average weekly sales and average transaction value. These two fundamentals, along with new outlet
commissionings, have historically formed the cornerstone for revenue growth.
Network sales growth during the next 12 months will be driven by consistent and continued targeted marketing programs for all three (and
possibly four) systems together with new store growth and the introduction of new and enhanced products.
As detailed above, expansion of the CRF and CMF distribution networks also represents an exciting new growth opportunity for the Company.
In that respect, franchisees are already reporting that the CMF has removed the majority of the day-to-day pre-trade operations required at outlet
level—encouraging multi-franchise and multi-system ownership.
Through its high-profi le brands, strong systems and exceptional franchisee support, Retail Food Group is confi dent of delivering robust,
consistent and sustainable revenue and earnings for the 2008 fi nancial year and beyond.
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Retail Food Group Annual Report
Anthony James (Tony) Alford
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER