Retail Food Group reported underlying net profit of $15.4 million for the 2019 financial year – 53.7 per cent lower than the prior period’s figure of $33.3 million.
RFG noted these challenging operating conditions were a result of intense competition and changing consumer trends, as well as overall declines in retail performance – especially in shopping centres.
Additionally, a $185.2 million in impairment and restructuring costs hit statutory net profit, lowering the figure to $149.3 million.
However, the group is beginning to see slow stabilisation, as it moves through the early stages of a turnaround plan led by executive chairman Peter George.
“Redefining best practice”
Retail Food Group said it is taking proactive steps to improve its systems beyond the scope of the Franchising Code of Conduct, with the aim of redefining best practices.
Article Insider Retail by Dean Blake 2 Sept 2019