Shares of Retail Food Group [ASX:RFG] have lost a whopping 9.23% today.
Retail Food Group has announced it’s cutting its FY17 profit expectations to 15% from its previous 20% forecast.
The bakery, pizza and coffee chain’s international operations have continued to enjoy growth during the year, but the group has been impacted by obstacles in franchise growth.
The main reason for the decline is that Michel’s Patisserie Marketing Fund balance’s full recoverability are ‘no longer certain’, as a number of the outlets have closed.
Shares were trading at $4.62 at time of writing, down from $5.09 yesterday.
Retail Food Group is a brand manager and franchisor for well-known Australian brands such as Gloria Jean’s Coffees, Brumby’s and Crust Gourmet Pizza Bar. Year to date, shares for the group have lost 34.05% of their value.
What now for Retail Food Group?
RFG still remains optimistic in regards to future. According to the company, its diversified business model gives it a chance to keep growing. In FY18, the company expects the international, commercial and coffee and allied beverages division to drive growth.
The company has been making advances in international markets, with a strong presence in the pacific islands.
By Selva Freigedo