Retail Food Group (ASX:RFG) has released its first-half results for 2026, navigating a period of significant structural change amidst difficult trading conditions.
The group reported domestic network sales of $254.6 million, a slight 1% decrease compared to the previous corresponding period.
However, performance was bolstered by a 0.8% rise in Core Brand Network Sales, reaching $247 million.
The resilience was driven by same store sales growth in key brands, specifically Crust (+2.2%) and Beefy’s (+4.6%), which helped offset softer performance across other Coffee Coach & Bakery brands.
The group recorded an underlying EBITDA of $9.2 million, representing a 43.1% decline against the prior year.
The result was influenced by the cycling of a one-off $2.7 million insurance receipt from the previous year and a reduction in underlying revenue to $51.7 million.
Despite the half-year dip, RFG has maintained its full-year FY26 underlying EBITDA guidance of $20 million to $24 million, anticipating a stronger performance in the second half.
A core component of this period was the "strategy reset," which saw a net reduction of 29 trading outlets as the company exited non-core brands and low-performing sites.
Approximately 70% of targeted company store transitions or closures have now been completed or agreed upon.
Executive Chairman Peter George emphasised that these transformation efforts are focused on reducing the cost base and improving Franchise Partner profitability to drive long-term shareholder value.