Company DescriptionRetail Food Group Limited, a food and beverage company, engages in the management of a multi-brand retail food and beverage franchise in Australia and internationally. The company operates through four segments: Bakery/Café, QSR, Coffee Retail, and Di Bella Coffee. It is also involved in the ownership of the intellectual property; development and management of coffee roasting facilities; and the wholesale supply of coffee and allied products under the Di Bella Coffee brand. The company develops and manages Donut King, Brumby's Bakery, Michel's Patisserie, Esquires Coffee Houses, Pizza Capers Gourmet Kitchen, Crust Gourmet Pizza Bar, The Coffee Guy, Café2U, and Gloria Jean's Coffees. As of July 31, 2022, it had 840 outlets in Australia and 584 outlets across 54 licensed international territories in 41 countries. Retail Food Group Limited was founded in 1989 and is headquartered in Robina, Australia.

How the Company Makes Money

Retail Food Group Limited Financial Statement Overview

Summary

Retail Food Group is experiencing a recovery phase with improvements in revenue growth and gross profit margins. However, challenges remain in maintaining consistent profitability and cash flow stability. The balance sheet shows moderate leverage and a healthy equity base, but with low ROE, indicating a need for better profitability and cash flow management.

Income Statement

Neutral

Retail Food Group has shown improvement in revenue with a growth rate of 12.4% from 2023 to 2024, which is a positive indicator. Gross profit margin improved significantly to 71.8% in 2024, up from 48.8% in 2023. However, the company is struggling with profitability, as indicated by negative EBIT margins in recent years, although there was a positive turnaround in net income in 2024, showing a net profit margin of 4.6%.

Balance Sheet

Neutral

The company's debt-to-equity ratio is 0.55 in 2024, which indicates a moderate level of leverage. The equity ratio stands at 56.4%, reflecting a healthy proportion of equity financing. Return on equity (ROE) is 2.8% in 2024, which shows slight improvement but remains low, indicating limited effectiveness in generating profit from shareholders' equity.

Cash Flow

Neutral

Operating cash flow turned positive in 2024, showing a substantial recovery from negative figures in 2023, which is a good sign. The free cash flow to net income ratio is 1.78, indicating strong cash generation relative to net income. However, historical fluctuations in cash flow metrics suggest some instability in cash flow management.

TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Breakdown
Income Statement		Total Revenue
136.81M	125.18M	111.37M	102.58M	109.10M	126.40M
	Gross Profit
76.14M	90.88M	54.38M	50.77M	52.19M	47.69M
	EBIT
9.74M	-1.90M	-13.21M	2.19M	9.03M	-10.79M
	EBITDA
24.90M	26.58M	1.42M	19.28M	24.52M	48.11M
	Net Income Common Stockholders
8.90M	5.79M	-8.95M	5.26M	1.46M	-3.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
21.43M	20.64M	22.26M	29.22M	34.65M	40.25M
	Total Assets
374.67M	368.74M	348.89M	350.08M	369.76M	437.50M
	Total Debt
112.89M	113.62M	110.64M	128.42M	153.38M	177.66M
	Net Debt
91.46M	93.00M	88.37M	99.20M	118.73M	137.42M
	Total Liabilities
158.95M	160.73M	149.18M	166.30M	191.91M	261.41M
	Stockholders Equity
215.71M	208.01M	199.71M	183.78M	177.86M	176.09M
Cash Flow		Free Cash Flow
13.05M	10.32M	-4.93M	12.34M	8.41M	-5.79M
	Operating Cash Flow
18.06M	15.36M	-1.20M	15.43M	11.07M	-3.83M
	Investing Cash Flow
-4.38M	-9.91M	-2.21M	-828.00K	1.88M	-279.00K
	Financing Cash Flow
-13.23M	-7.09M	-3.61M	-20.24M	-18.43M	31.09M

Retail Food Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RFGPF		$74.18M	16.90	4.31%	―	―	―
Sector *	62 Neutral	$6.88B	11.32	2.90%	3.87%	2.70%	-24.57%
SHVTF		$417.41M	22.45	7.05%	―	―	―
CLLFF		$585.79M	17.48	12.25%	3.54%	―	―
DPZUF		$1.31B	120.86	2.09%	5.04%	―	―
IH1		€794.13M	14.42	38.76%	5.47%	―	―
B6G		€975.36M	46.13	3.35%	1.93%	―	―

* Consumer Cyclical Sector Average

Performance Comparison

RFGPF

Retail Food Group Limited

1.60

0.00

0.00%

SHVTF

Select Harvests

3.35

1.11

49.55%

CLLFF

Collins Foods

4.96

-1.19

-19.35%

DPZUF

Domino's Pizza Enterprises Limited

13.85

-11.21

-44.73%

DE:IH1

Inghams Group Ltd.

2.12

0.07

3.41%

DE:B6G

Bega Cheese Limited

3.16

0.61

23.92%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.