RETAIL Food Group, owner of Michel’s Patisserie, Donut King and the BB’s cafe chain, has reported a strong performance, with profit for the first half expected to hit at least $4.5 million, 15% higher than for the same period last year.
RFG said the expected improved profit was a result of its investment in the Michel’s and Brumby’s franchises last year for a combined $146 million.
It was also due to an increase in franchise revenue as both operations’ sales increased and new franchised stores were opened.
Analysts said the profit increase was expected as the company last year said the takeover of Michel’s and Brumby’s would boost earnings a share by at least 50%.
The Brisbane company has also previously predicted that the full-year profit for 2007-08 will increase 30% to $9.8 million.
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