Coffee, bakery and pizza franchise owner The Retail Food Group's expansion overseas and addition of a food distribution business have boosted its annual profit.
The owner of Gloria Jean's, Donut King and Crust made a net profit of $61.9 million in the year to June 30, up 17 per cent from the prior year.
Donut King was RFG's best performing franchise business.
Photo: Jonathan CarrollBut its 14 per cent rise in underlying profit to $75.7 million was below its June guidance of 15 per cent growth, and the company had earlier forecast 20 per cent growth.
Retail Food Group has expanded five of its brands - Gloria Jean's, Donut King, It's A Grind Coffee House, Pizza Capers and Brumby's Bakery - into new markets, including the Middle East, Africa and India.
It now operates in 81 territories, an increase of 17 per cent on a year ago.
Managing director Andre Nell said the group's growing international network had boosted the company's revenue streams.
Underlying earning in its franchise division improved by 1.5 per cent on the previous year, supported by growth in its international and coffee operations.
Donut King was its best performing franchise business, while Michel's Patisserie was impacted by changes to the business related to the introduction of customised cakes.
Retail Food Group also established a commercial division in the 2016-17 financial year after acquiring food distribution business Hudson Pacific Corporation, and that contributed $11.8 million in underlying earnings.
Shares in Retail Food Group were down 2.5 cents, or 0.5 per cent, at $4.775 at 1345 AEST.
AAP
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