Retail Food Group reports $7.3m net profit in H1

Underlying revenue went up 24.7%

Retail Food Group reported a statutory net profit after tax (NPAT) of $7.3m in H1 2025, a 73.8% increase from the same period last year despite decreased footfalls in some of its stores.

However, the group reported an underlying NPAT decrease of 19.1% to $6.5m in H1 2025.

Underlying Revenue increased 24.7% on PCP with a larger corporate store portfolio and the acquisition of Beefy’s Pies offsetting lower franchise fees.

EBITDA margins of 24.1% remain strong but fell slightly on PCP in line with increased weighting to corporate stores and Beefy’s acquisition.

The group’s cafe, coffee, and bakery (CCB) business contributed 72.8% of group network sales with higher revenue conversion due to vertical integration of coffee and pie manufacturing and a higher % of Company Store operation (13.4% of CCB outlets). Same-store sales went up 1% in CCB to $165.1m.

Meanwhile, QSR businesses contributed 27.2% of group network sales with no vertical integration of product sales into the network and only 6 Company Store operated outlets (2.3% of QSR outlets) resulting in a lower revenue conversion.

Crust has seen a customer count decline in line with the category as families continue to pull back (total food service spend -10.7%, traffic -2.6%)2, but has minimised the impact on Franchise Partner profitability. Meanwhile, a reduction in Pizza Capers outlets (non-core) in FY2024 is contributing to the net network sales decline.

Recently, the group announced that it has acquired the master franchisee for Firehouse Subs in Australia.