Retail Food Group Posts $29.6M EBITDA, Beefy’s Pies Sales Surge 16.6%

Financial Performance and Growth Momentum

Retail Food Group Limited (ASX, RFG) has delivered a solid financial performance for FY25, posting an underlying EBITDA of $29.6 million, marking a 1.7% increase compared to the prior year. This growth was supported by a 13.6% rise in underlying revenue, largely fueled by the expansion of Beefy’s Pies and a rebound in Crust Gourmet Pizza Bars during the final quarter.

Network sales showed resilience with a modest 0.3% domestic growth year-on-year, despite challenging trading conditions earlier in the year. Notably, Crust Gourmet Pizza Bars returned to growth with a 5.5% increase in network sales in Q4, signaling renewed consumer interest and effective brand initiatives.

Strategic Brand Focus and Expansion Plans

A key highlight of the year was the signing of a 20-year development agreement with Restaurant Brands International to introduce Firehouse Subs to the Australian market. The plan is ambitious, targeting 165 new outlets over the next decade, with the first restaurant expected to open mid FY26. This move positions RFG to tap into a growing segment of the fast-casual dining market with a well-established international brand.

Beefy’s Pies continues to be a growth engine, with network sales up 16.6% and same-store sales increasing by 5.1%. The company has opened five new stores since acquisition and aims to reach 50 outlets by 2028. This focus on Beefy’s Pies and Firehouse Subs is reflected in RFG’s corporate store strategy, which will concentrate on these brands while transitioning other corporate outlets to franchise ownership or closing them.

Portfolio Reshaping and Financial Position

In a significant portfolio adjustment, RFG has impaired Brumby’s Bakery by $12.2 million following a strategic review. The company is actively exploring divestment options for Brumby’s in FY26, signaling a shift away from this legacy brand to prioritize higher-growth opportunities.

On the balance sheet front, RFG ended FY25 with $26 million in cash reserves and net debt of $9 million. The company holds senior secured debt of $32.5 million, with refinancing expected when the facility matures in April 2026. Operating cash flow improved to $19.6 million, maintaining a steady cash conversion rate of 75%.

Looking Ahead

CEO Matt Marshall emphasized the company’s clear priorities, enhancing core brands through retail excellence and technology, expanding domestic outlets to at least 200 per brand, and growing the network internationally, particularly with Gloria Jean’s and Donut King. The strategic pivot towards Firehouse Subs and Beefy’s Pies underscores RFG’s commitment to sustainable long-term growth amid evolving market conditions.