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Retail Food makes $18.5m in writedowns

Jun 02, 2015

Gloria Jeans and Crust Pizza owner, Retail Food Group, faces an $18.5 million hit to its bottom line but remains confident of lifting its annual profit.

The company, which owns a string of food and coffee shop brands, announced $18.5 million in asset writedowns on Tuesday due to efforts to consolidate duplicated systems and facilities following a number of acquisitions.

But it reaffirmed its full year 2014/15 guidance for a net profit of $55 million, which is up 50 per cent on a year ago.

Retail Food Group has also flagged an earnings boost due to improved efficiency as it integrates recent acquisitions and targets further growth both in Australia and overseas.

It is now targeting $16 million in efficiency gains over the next three years, $3 million higher than its previous target.

The writedowns and updated outlook were announced as the group unveiled its three-year strategic plan, which includes the continued ramp up of its international operations.

Retail Food Group is establishing a dedicated international division to support the expansion of its brands overseas.

The company’s brands are already operating in 58 territories.

It is also speeding up the expansion of its Di Bella Coffee brand both in Australia and overseas.

“RFG is no longer exclusively wedded to domestic retail conditions, but is now possessed of the multiple levers for growth typical of a truly global enterprise,” managing director Tony Alford said.

“The group’s recent transformation gives the board every confidence in the continued performance of RFG over the foreseeable future.”

– AAP

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