Retail Food Group navigates challenging trading conditions, retains Brumby’s
The Retail Food Group (RFG) is eyeing a rebound in its earnings figures after a disappointing first half of the 2026 financial year.
RFG said it is expecting to report an underlying EBITDA of $9 to $10 million for the first half. It recorded $16 million over the same period in 2025.
In response to what the group called “challenging trading conditions”, the company said it considered divesting its Brumby’s Bakery group.
“While Brumby’s attracted considerable interest from multiple parties, we were ultimately not convinced that the options available would be in the best interests of shareholders, franchisees, or team members at this time,” said executive chairman Peter George.
“Brumby remains profitable and is an important contributor to RFG’s performance, with this decision providing certainty for all brand stakeholders”.
RFG’s trading update added that slower than anticipated contributions from newer Beefy’s outlets and delays associated with commissioning the recently established Turkey supply hub had impacted its performance.
Domestic network sales in the half-year reached $254.6 million, a 1 per cent decrease from 2025. Same-store sales growth grew by 0.2 per cent, with Beefy’s leading the way at a 4.6 per cent increase.
“While challenging trading conditions are expected to persist in the near term, RFG remains focused on driving enhanced network sales and store-level profitability for its franchise partners via product innovation, brand refresh, and compelling marketing initiatives,” George added.
The group is now eyeing efficiency improvements.
It expects to deliver $1.2 to $1.8 million in savings during the 2026 financial year, increasing to $5 to $7 million in the following year.
Earnings are expected to improve in the next half-year period, with an underlying EBITDA of $20 to $24 million in the 2026 financial year.
George said: “RFG’s brands each offer a compelling customer value proposition, and the actions we are taking are focused on helping to improve franchisee profitability, and in turn, RFG shareholder value.
“The first Firehouse Subs store is expected to launch in FY26, with a continuing focus on flagship site selection and supply chain finalisation.
“Combined with an anticipated improvement in the performance of our coffee business, including the imminent commencement of operations at our new Turkey support hub, we expect to see earnings improve going forward.”
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