(RFG) Donut King ++ BB's Coffee

[tommy]

Well done, RFG!

http://sa.iguana2.com/cache/8ea77364...RFG-197245.pdf

The Company’s EBIT for 1H08 was $16.0 million. This result represents an increase of 153.6% (or $9.7 million) over EBIT for the previous corresponding period ($6.3 million). The Company has now achieved approximately 51.8% of its forecast full year EBIT for FY08, and 50.0% of its proforma full year forecast of $32.0 million.

The Directors are satisfied and remain confident that the Company is well positioned to meet its FY08 proforma adjusted EBIT of $32.0 million.

The Company’s strong half-year result was primarily due to recent acquisitive activity together with robust new outlet openings and growth in franchised outlet average weekly sales and average transaction values.

The Company’s NPAT for 1H08 was $8.1 million. This result represents an increase of 106.8% (or $4.2 million) over NPAT for the previous corresponding period ($3.9 million).


EPS almost double from 5.5c to 10.1c

HOWEVER, operating cash flow is now almost a third...
Receipts from customers massively increased but so has payments to suppliers and employees.

THEY BETTER GET THEIR COST SYNERGIES IN PLACE SOON, OTHERWISE THIS CAN BE A DANGEROUS SITUATION WHEN LOADED WITH SO MUCH DEBT!

[winner69]

Where's Tommy these days?

RFG still doing OK and making as much as they said they would

Announcement today could be good for share price ... that hasn't been hammered too much over the last 6 months

[mark100]

This thread has gone rather quiet. Despite some reservations about RFG's management early on (myself included) they seem to have proven themselves reasonably well since listing.

They might be making a bottom at around $2.40-2.50? Funadamentals are pretty solid at the moment, sub 10 PE, ROE of around 20% and the high debt/equity that scared a lot of people is gradually coming down which will allow the dividend payout ratio to improve with time.

Not one to give spectacular returns but a potenatially nice risk/reward ratio

[Huang Chung]

Haven't looked at RFG for a while.

12 month chart isn't very pretty.

Any ideas as to why the year long sell down?

PS. Despite all the healthy eating promos etc, the is always a ton of people at our local Donut King. Not bad coffee either...

[STRAT]

is always a ton of people at our local Donut King. .

Hi HC.
That would be around 3 regular customers eh?

[Huang Chung]

Yeah, well unfortunately I'm one of them...

mmmm...donuuuts......

[h2so4]

"I owe it all to little chocolate donuts."

[mamos]

I wonder if RFG will try to pick this up?

The Krispy Kreme doughnut chain has entered voluntary administration because of poor sales at some stores.
The locally owned Australian arm of Krispy Kreme has 50 sites across the east coast that employ a total of 650 staff.
The company has confirmed accounting firm Smith Hancock will launch a month-long restructure that could result in lay-offs. Stores are expected to remain open while the restructure is under way.
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“Krispy Kreme has excellent brand recognition and good turnover and profitability in its better stores,’’ director John McGuigan said.
“However several factors, including location, sales declines, high rents and high distribution costs, have meant that a number of stores are losing money...
“Directors have determined that a restructure is necessary and the appointment of a voluntary administrator is the responsible action in view of the risk of insolvency if the company continued to operate in its current form,” Mr McGuigan said.
The company's revenue rose 6.9 per cent to $57.9 million in 2009, according to Dun & Bradstreet's Company 360 business information service. However, net profit margins were up only $62,000 or 0.1 per cent, over the same period.
“In the event that there are redundancies arising out of the voluntary administration process, all employee entitlements have been protected and will be met in full,” Krispy Kreme said.
Mike Smith and Peter Hillig have been named voluntary administrators, the company said.
“The directors believe the company’s core business, which has a seven-year history in Australia, remains strong and that a financially stable company will emerge from the process.”
Krispy Kreme opened locally in 2003. The Australian company has the sole right to use the Krispy Kreme brand name in Australia and New Zealand. The business is fully owned by KKA Holdings.

[The Big Ease]

50 sites and 57m revenue.
IF each turned over 1.1m and had a 5% margin, you should be seeing a healthy profit.
No doubt they have higher cost structures and with more than a few poorly performing stores, 5% doesnt give you much to play with.
I hope the things kicks it. The fuss people used to make when there was just one store in Sydney and work colleagues would make a point of bringing a box down.
It really used to Sh!t me. Bogan antics dont amuse me.

[Joshuatree]

Chairman's Address to AGM CEO's Address to AGM

1.35 million kg of roasted coffee beans!