Retail Food Group sees YOY decline in FY26 underlying EBITDA
- Retail Food Group reported FY26 underlying EBITDA of $20.3 million, meeting its guidance range despite a 31.4% year-on-year decline.
- Underlying net profit after tax fell 41.8% to $7.8 million, while underlying revenue dropped to $99.6 million.
- The company completed major cost rationalisation initiatives and plans to expand its Firehouse Subs network to 15 stores by December 2027.
Retail Food Group (ASX:RFG) reported full-year 2026 underlying EBITDA of $20.3 million, meeting its guidance target despite a 31.4% decline from the previous corresponding period.
Underlying net profit after tax fell 41.8% to $7.8 million, while underlying revenue dropped to $99.6 million.
The result reflects softer trading conditions, store closures, and lower coffee margins prior to wholesale price adjustments implemented in March 2026.
"Our key transformation programme initiatives have been completed, delivering initial savings and a brand-aligned operating model intended to enhance franchise partner support and profitability," said Retail Food Group Executive Chairman Peter George.
The company secured $2.3 million in transformation programme savings and completed a debt refinancing while opening its first Firehouse Subs location in Queensland.
The group expects its completed cost-cutting initiatives and operational changes to support earnings momentum heading into FY27.
Following the announcement, the Retail Food Group share price was unchanged at $1.06.
Trading for the first eight weeks of FY27 has seen core brand Network Sales down 2.6%, primarily reflecting network rationalisation and outlet closures.
Domestic network sales reached $489.5 million across the financial year, marking a 3.1% decline amidst ongoing store network optimisation efforts.
Retail Food Group stated that it is targeting four Firehouse Subs locations by December 2026 before scaling the franchise footprint to 15 stores by December 2027.
