Q4 2026 Retail Food Group Ltd Earnings Call

August 26, 2026

Speaker #1: Good morning, everyone, and thank you for joining the Retail Food Group FY26 results presentation. My name is Peter George, and I'm the Executive Chairman of RFG.

Speaker #1: I'm joined today by Ryan Chellingworth, our Chief Financial Officer and Joint Company Secretary. Today we'll begin with an update on the business and the progress made across our transformation program.

Speaker #1: Ryan will then take you through the FY26 financial result in more detail. I'll then return to discuss current trading, the FY27 outlook, and our priorities for the year ahead.

Speaker #1: Before we open, for questions, just a reminder: RFG is a multi-brand food franchise, or, and supply chain operator, owner of 9 brands across approximately 1,200 outlets in 29 countries, including 665 outlets in Australia.

Speaker #1: We manufacture and distribute pie and coffee products, and hold the exclusive license to develop the firehouse subs business in Australia. The partnership with our franchise partners is the core of our business.

Speaker #1: RFG's support of its franchise partners helps their stores succeed through improving store-level sales, increased store-level profitability, which drives shared growth for the mutual benefit of franchise partners RFG and our shareholders.

Speaker #1: Improving franchise partner profitability remains RFG's core focus. RFG performs best when our franchise partners operate healthy and sustainable businesses. Our priorities are profitable core brand growth, stronger customer engagement, improved store economics, and efficient group support.

Speaker #1: We are delivering these priorities through a simpler operating model and three transformation workstreams. First, cost rationalization has aligned the cost base for the portfolio.

Speaker #1: Consolidated operations at Ravena and reduced management layers. Secondly, operational enhancement is streamlining processes, improving supply chain and field team effectiveness, and delivering more responsive franchise partner support.

Speaker #1: And thirdly, structural alignment has established accountable brand-aligned leadership, aligning operations and marketing by brand, and retaining efficient central support functions. Together, these actions provide a simpler operating platform focused on stronger store economics and sustainable network growth.

Speaker #1: Turning to the key business highlights, FY26 underlying EBITDA was delivered within guidance, with second half EBITDA improving 20.9% on the first half. Costs, the key cost rationalization and structural alignment initiatives were completed during the second half, while operational enhancements remain well progressed.

Speaker #1: This includes right-sizing the business, consolidating our Southeast Queensland offices, and materially reducing recurring company store cash outflows. While core brand trading remained effected by challenging consumer conditions, average weekly sales across the group increased by 1.2% during the year, and we are seeing encouraging brand-level proof points.

Speaker #1: These include Gloria Jean's refurbished outlets generating higher average weekly sales, Cruston Beefy's both delivering network sales growth, and initiatives at Donut King and Bromby's supporting positive early FY27 same-store sales growth.

Peter George: Good morning, everyone, and thank you for joining the Retail Food Group FY26 results presentation. My name is Peter George, and I am the Executive Chairman of RFG. I am joined today by Ryan Chellingworth, our Chief Financial Officer and Joint Company Secretary. Today, we will begin with an update on the business and the progress made across our transformation program. Ryan will then take you through the FY26 financial result in more detail. I will then return to discuss current trading, the FY27 outlook, and our priorities for the year ahead before we open for questions. Just to remind you, RFG is a multi-brand food franchisor and supply chain operator, owner of nine brands across approximately 1,200 outlets in 29 countries, including 665 outlets in Australia. We manufacture and distribute pie and coffee products and hold the exclusive license to develop the Firehouse Subs business in Australia.

Speaker #1: The first firehouse sub store has traded strongly since opening, serving 750 tickets on grand opening day. While the Turkey hub is fully operational and supporting international outlet growth, these achievements together with the February refinancing provide a more stable and efficient platform for RFG's FY27 growth priorities.

Speaker #1: As we look to FY27, we expect the initiatives undertaken to deliver benefits for both franchise partners through improved unit economics and for the group in the form of improved gross margins from wholesale coffee price increases delivered in March 2026, together with lower input costs, full-year run-rate benefits of the cost-out initiatives, and continued improvements in cash flow building on the second half of 2026 momentum.

Peter George: The partnership with our franchise partners is the core of our business. RFG's support of its franchise partners helps their stores succeed through improving store-level sales, increased store-level profitability, which drives shared growth for the mutual benefit of franchise partners, RFG, and our shareholders. Improving franchise partner profitability remains RFG's core focus. RFG performs best when our franchise partners operate healthy and sustainable businesses. Our priorities are profitable core brand growth, stronger customer engagement, improved store economics, and efficient group support. We are delivering these priorities through a simpler operating model and three transformation work streams. First, cost rationalization has aligned the cost base with the portfolio, consolidated operations at Robina, and reduced management layers. Secondly, operational enhancement is streamlining processes, improving supply chain and field team effectiveness, and delivering more responsive franchise partner support.

Speaker #1: Turning to slide 7, as I said, underlying EBITDA was 20 EBITDA was 20.3 within the guidance range provided to the market back in February.

Speaker #1: Domestic network sales were 490 million, down 3.1%, while same-store sales declined slightly by 0.7%. This reflected difficult consumer conditions, closure of non-core brand and low-performing outlets, and the company store strategy reset.

Speaker #1: Domestic outlets ended the period at 665, which was down 29 from December 2025, reflecting lower-performing and non-core outlet closures. The company store reset and broader network movements.

Speaker #1: Six new outlets opened in the second half of 2026. Underlying revenue for RFG was 99.6 million, and underlying NPAT 7.8 million. While earnings were lower than the prior year, the second half trajectory improved as transformation benefits emerged.

Peter George: Thirdly, structural alignment has established accountable brand-aligned leadership, aligning operations and marketing by brand, and retaining efficient central support functions. Together, these actions provide a simpler operating platform focused on stronger store economics and sustainable network growth. Turning to the key business highlights, FY26 underlying EBITDA was delivered within guidance, with H2 EBITDA improving 20.9% on the H1. The key cost rationalization and structural alignment initiatives were completed during the H2, while operational enhancements remain well progressed. This includes rightsizing the business, consolidating our Southeast Queensland offices, and materially reducing recurring company store cash outflows. While core brand trading remained affected by challenging consumer conditions, average weekly sales across the group increased by 1.2% during the year, and we are seeing encouraging brand-level proof points.

Peter George: Thirdly, structural alignment has established accountable brand-aligned leadership, aligning operations and marketing by brand, and retaining efficient central support functions. Together, these actions provide a simpler operating platform focused on stronger store economics and sustainable network growth. Turning to the key business highlights, FY2026 underlying EBITDA was delivered within guidance, with H2 EBITDA improving 20.9% on the H1. The key cost rationalization and structural alignment initiatives were completed during the H2, while operational enhancements remain well progressed. This includes rightsizing the business, consolidating our Southeast Queensland offices, and materially reducing recurring company store cash outflows. While core brand trading remained affected by challenging consumer conditions, average weekly sales across the group increased by 1.2% during the year, and we are seeing encouraging brand-level proof points.

Speaker #1: With initial savings of 2.3 million, wholesale coffee pricing improved procurement, and the Turkey supply hub all started to contribute from the second half. Second half 2026 underlying EBITDA was 20.9% up on the first half at 11.1 million.

Speaker #1: The transformation benefits, of course, were only partly reflected in FY26 and provide a stronger operating base entering FY27. Ryan will take you through the financial result and underlying adjustments in more detail later in the presentation.

Speaker #1: Looking at the network results in more detail on slide 8, the FY26 performance reflects those difficult consumer conditions: a lower outlet base and ongoing portfolio optimization.

Speaker #1: Performance differed across the portfolio with coffee, café, and bakery still affected by softer customer traffic, while quick service restaurants delivered positive same-store sales growth of 0.7%.

Speaker #1: Supported by improved customer positioning and marketing initiatives, the core brand network remains substantial, generating 476 million of network sales across 649 domestic outlets period end.

Peter George: These include Gloria Jean's refurbished outlets generating higher average weekly sales, Crust and Beefy's both delivering network sales growth, and initiatives at Donut King and Brumby's Bakery supporting positive early FY27 same-store sales growth. The first Firehouse Subs store has traded strongly since opening, serving 750 tickets on grand opening day, while the Turkey hub is fully operational and supporting international outlet growth. These achievements, together with the February refinancing, provide a more stable and efficient platform for RFG's FY27 growth priorities. As we look to FY27, we expect the initiatives undertaken to deliver benefits for both franchise partners through improved unit economics and for the group in the form of improved gross margins from wholesale coffee price increases delivered in March 2026, together with lower input costs, full-year run rate benefits of the cost-out initiatives, and continued improvements in cash flow building on the H2 of FY26 momentum.

Peter George: These include Gloria Jean's refurbished outlets generating higher average weekly sales, Crust and Beefy's both delivering network sales growth, and initiatives at Donut King and Brumby's Bakery supporting positive early FY2027 same-store sales growth. The first Firehouse Subs store has traded strongly since opening, serving 750 tickets on grand opening day, while the Turkey hub is fully operational and supporting international outlet growth. These achievements, together with the February refinancing, provide a more stable and efficient platform for RFG's FY2027 growth priorities. As we look to FY2027, we expect the initiatives undertaken to deliver benefits for both franchise partners through improved unit economics and for the group in the form of improved gross margins from wholesale coffee price increases delivered in March 2026, together with lower input costs, full-year run rate benefits of the cost-out initiatives, and continued improvements in cash flow building on the H2 of FY2026 momentum.

Speaker #1: We opened six core brand outlets during the second half. Closures included lower-performing outlets, company store exits, and non-core locations. While we will always prefer to retain viable outlets, our priority is ensuring a sustainable network in which franchise partners can achieve appropriate store economics.

Speaker #1: The company store reset also progressed with 74% of the outlets exited, transitioned to franchise partners, agreed for sale, or closed. As mentioned, the first firehouse sub restaurant opened in FY26, and we continue to target four Australian restaurants by December of this year.

Speaker #1: Overall, the network enters FY27 with a more focused outlet base, improving momentum in QSR and clearer priorities across the core brand portfolio. Turning to slide 9, our core brands provide RFG with significant customer reach and a substantial platform for future growth.

Peter George: Turning to the FY26 result on slide seven. As I said, underlying EBITDA was AUD 20.3 million within the guidance range provided to the market back in February. Domestic network sales were AUD 490 million, down 3.1%, while same-store sales declined slightly by 0.7%. This reflected difficult consumer conditions, closure of non-core brand and low-performing outlets, and the company store strategy reset. Domestic outlets ended the period at 665, which was down 29 from December 2025, reflecting lower performing and non-core outlet closures, the company store reset, and broader network movements. Six new outlets opened in the H2 2026. Underlying revenue for RFG was AUD 99.6 million and underlying NPAT AUD 7.8 million. While earnings were lower than the prior year, the H2 trajectory improved as transformation benefits emerged with initial savings of AUD 2.3 million.

Speaker #1: Donut King Crust and Gloria Jean's provide established network scale, while Bromby's and Beefy's offer opportunities to improve store economics and expand their domestic presence.

Speaker #1: Firehouse subs represent an earlier stage growth platform. First Australian restaurant as mentioned opened near the end of FY26, with the initial rollout progressing separately from the established brand networks.

Speaker #1: Our focus is not simply on increasing outlet numbers. We are concentrating investment and support on improving customer engagement, strengthening franchise partner economics, and developing operating models that can support sustainable network growth.

Speaker #1: The following slides present further detail on the initiatives and opportunities within each of these brands. Starting with Gloria Jean's, the Gloria Jean's Glorange format continues to provide encouraging evidence that investment in the customer experience can deliver meaningful sales improvement.

Speaker #1: 10 outlets were trading under the new format at year-end, comprising 9 refurbished stores and 1 new outlet. Across the refurbished stores, average weekly sales were 19% higher during the first 8 weeks following refurbishment.

Peter George: Also, coffee pricing, improved procurement, and the Turkey supply hub all started to contribute from the H2. H2 FY26 underlying EBITDA was 20.9% up on the H1 at AUD 11.1 million. The transformation benefits, of course, were only partly reflected in FY26 and provide a stronger operating base entering FY27. Ryan will take you through the financial result and underlying adjustments in more detail later in the presentation. Looking at the network results in more detail on slide eight. The FY26 performance reflects those difficult consumer conditions, a lower outlet base, and ongoing portfolio optimization. Performance differed across the portfolio, with coffee, cafe, and bakery still affected by softer customer traffic. While quick service restaurants delivered positive same-store sales growth of 0.7%, supported by improved customer positioning and marketing initiatives.

Speaker #1: 5 additional refurbishments have already been agreed for the first half of FY27, providing further opportunities to validate format across the network. While the rollout remains at an early stage, the performance to date supports the continued renewal of the Gloria Jean's network.

Speaker #1: The opportunity for Gloria Jean's extends beyond the physical store format. We are restoring the in-store experience for a more premium and personalized coffee proposition, supported by renewed coffee excellence training and a simpler menu and pricing structure.

Speaker #1: These changes are intended to improve both customer relevance and franchise partner economics, including through opportunities to reduce cold drink costs of goods. Donut King's FY26 initiatives are focused on reconnecting with core customers and strengthening the proposition for franchise partners.

Speaker #1: The brand is returning to its core products, supported by a more consistent media activity and enhanced value program in the reintroduction of licensed partnerships that create relevant customer occasions.

Peter George: The core brand network remains substantial, generating AUD 476 million of network sales across 649 domestic outlets at period end. We opened six core brand outlets during the H2. Closures included lower performing outlets, company store exits, and non-core locations. While we will always prefer to retain viable outlets, our priority is ensuring a sustainable network in which franchise partners can achieve appropriate store economics. The company store reset also progressed, with 74% of the outlets exited, transitioned to franchise partners, agreed for sale, or closed. As mentioned, the first Firehouse Subs restaurant opened in FY26, and we continue to target four Australian restaurants by December of this year. Overall, the network enters FY27 with a more focused outlet base, improving momentum in QSR, and clearer priorities across the core brand portfolio. Turning to slide nine.

Speaker #1: The loyalty app and click-and-collect capability will also be relaunched to support customer frequency and convenience. Importantly, several of these initiatives are yet to launch and are not reflected in current trading.

Speaker #1: Same-store sales increased 0.3% over the first 8 weeks of FY27. This represents continued growth despite the challenging consumer conditions and follows positive growth of 0.6% in the prior period.

Speaker #1: Together with enhancements to the operations team, we expect these initiatives to improve franchise partner store economics and support sustainable sales growth. At Bromby's, our focus is strengthening franchise partner engagement, improving store economics, and creating a more attractive model for future network growth.

Speaker #1: We are improving communication and operational support with greater focus on store sales, performance, and supply chain management. At the same time, clearer brand standards and more consistent marketing are intended to strengthen execution and the customer experience across the network.

Peter George: Our core brands provide RFG with significant customer reach and a substantial platform for future growth. Donut King, Crust Gourmet Pizza, and Gloria Jean's Coffees provide established network scale, while Brumby's Bakery and Beefy's offer opportunities to improve store economics and expand their domestic presence. Firehouse Subs represents an earlier stage growth platform. First Australian restaurant, as mentioned, opened near the end of FY26, with the initial rollout progressing separately from the established brand networks. Our focus is not simply on increasing outlet numbers. We are concentrating investment and support on improving customer engagement, strengthening franchise partner economics, and developing operating models that can support sustainable network growth. The following slides present further detail on the initiatives and opportunities within each of these brands. Starting with Gloria Jean's Coffees. The Gloria Jean's Glorange format continues to provide encouraging evidence that investment in the customer experience can deliver meaningful sales improvement.

Speaker #1: Importantly, we are simplifying the operational model to improve returns and make the franchise opportunity accessible to a broader pool of prospective franchise partners. Early FY27 trading is encouraging, with sales to same-store sales growth of 0.9% over the first 8 weeks, compared with a decline of 0.8% in the prior comparative period.

Speaker #1: This provides an early indication that the brand is moving in the right direction, while the broader improvement program continues. Onto Beefy's pies. Beefy's delivered a strong top-line growth in FY26 with network sales increasing 12% and underlying revenue rising 11% to 23.5 million.

Speaker #1: However, this growth did not fully translate into earnings, with underlying EBITDA declining 15%. This primarily reflects the performance of recently opened stores in new geographies, which have taken longer than expected to reach required sales and profitability levels.

Peter George: Ten outlets were trading under the new format at year-end, comprising nine refurbished stores and one new outlet. Across the refurbished stores, average weekly sales were 19% higher during the first 8 weeks following refurbishment. Five additional refurbishments have already been agreed for the first half of FY27, providing further opportunities to validate the format across the network. While the rollout remains at an early stage, the performance to date supports the continued renewal of the Gloria Jean's network. The opportunity for Gloria Jean's extends beyond the physical store format. We are restoring the in-store experience through a more premium and personalized coffee proposition, supported by renewed coffee excellence training and a simpler menu and pricing structure. These changes are intended to improve both customer relevance and franchise partner economics, including through opportunities to reduce cold drink costs of goods.

Speaker #1: Our priority for Beefy's remains to improve new store performance and ensure future network growth is sustainable and profitable. As part of this approach, the brand has returned to simple, value-led marketing focus on reconnecting with core customers and expanding recognition of the brand beyond the sunshine coast.

Speaker #1: These initiatives are producing encouraging results already. The pie day promotion saw a 17% increase in sales compared to the same time last year, while the state of origin-based steak versus steak fundraiser delivered a 57% increase in pie sold.

Speaker #1: Together with continued digital expansion and operating improvements, our focus is on converting Beefy's strong customer demand and network sales growth into improved store-level and group profitability.

Speaker #1: Crust pizza delivered a strong return to growth in FY26, with network sales increasing 3.1% and same-store sales increasing 0.3% compared with declines in both measures in the prior year.

Peter George: Donut King's FY26 initiatives are focused on reconnecting with core customers and strengthening the proposition for franchise partners. The brand is returning to its core products, supported by more consistent media activity, an enhanced value program, and the reintroduction of licensed partnerships that create relevant customer occasions. The loyalty app and click and collect capability will also be relaunched to support customer frequency and convenience. Importantly, several of these initiatives are yet to launch and are not reflected in current trading. Same store sales increased 0.3% over the first 8 weeks of FY27. This represents continued growth despite the challenging consumer conditions and follows positive growth of 0.6% in the prior period. Together with enhancements to the operations team, we expect these initiatives to improve franchise partner store economics and support sustainable sales growth.

Speaker #1: This improvement reflects additional outlets, new franchise partners, and multi-site operators combined with stronger customer engagement. Customer count increased 3.2% compared with a decline of 2.7% in the prior comparative period.

Speaker #1: Our focus is to build further on this stronger base. Crust is concentrating on its core product range, and the key sporting and celebration occasions for which the brand is well positioned.

Speaker #1: Limited-time offers will continue to use existing ingredients and familiar flavor profiles, helping to generate consumer interest without adding unnecessary complexity or cost for franchise partners.

Speaker #1: We are also developing major partnership opportunities intended to broaden awareness and extend the brand's customer reach. Overall, the opportunity is to convert Crust's improving customer engagement and network growth into stronger franchise partner profitability and sustainable growth.

Peter George: At Brumby's, our focus is strengthening franchise partner engagement, improving store economics, and creating a more attractive model for future network growth. We are improving communication and operational support with greater focus on store sales, performance, and supply chain management. At the same time, clearer brand standards and more consistent marketing are intended to strengthen execution and the customer experience across the network. Importantly, we are simplifying the operational model to improve returns and make the franchise opportunity accessible to a broader pool of prospective franchise partners. Early FY27 trading is encouraging, with same store sales growth of 0.9% over the first 8 weeks, compared with a decline of 0.8% in the prior comparative period. This provides an early indication that the brand is moving in the right direction while the broader improvement program continues. On to Beefy's Pies.

Speaker #1: Turning to Firehouse Subs, I'm very pleased to note that we achieved a successful Australian launch providing an encouraging foundation for the next stage of the rollout.

Speaker #1: The first restaurant opened at Mount Gravatta in June and grand opening day trading was particularly strong, with over 750 transactions recorded. Our immediate focus is building the site pipeline with discipline.

Speaker #1: Two additional Southeast Queensland locations are currently in final stages of lease negotiations, and a targeting openings in the second quarter of FY27. A further location is in the pipeline for December, supporting our target of having four Australian restaurants on the ground by the end of calendar 2026.

Speaker #1: While the rollout remains in its early days, initial performance is encouraging in the context of the longer-term rollout plan, including the target of 15 restaurants by December of next year.

Peter George: Beefy's delivered a strong top-line growth in FY26, with network sales increasing 12% and underlying revenue rising 11% to AUD 23.5 million. However, this growth did not fully translate into earnings, with underlying EBITDA declining 15%. This primarily reflects the performance of recently opened stores in new geographies, which have taken longer than expected to reach required sales and profitability levels. Our priority with Beefy's remains to improve new store performance and ensure future network growth is sustainable and profitable. As part of this approach, the brand has returned to simple value-led marketing focus on reconnecting with core customers and expanding recognition of the brand beyond the Sunshine Coast. These initiatives are producing encouraging results already. The Pie Day promotion saw a 17% increase in sales compared with the same time last year, while the State of Origin-based State versus State fundraiser delivered a 57% increase in pies sold.

Speaker #1: We remain committed to investing 4 million US per year over the next two financial years. Our approach will remain disciplined and focused on site selection, repeatable store economics, and appropriate returns on capital, as the network develops.

Speaker #1: Our international division returned to outlet growth during FY26, with the network increasing from 528 outlets in December to 536 at year-end. This growth included additional Gloria Jean's locations across Turkey and North Cyprus, we have introduced incentive programs to support further expansion by eligible international franchise partners, with one market signed and two more in progress.

Speaker #1: The Turkey roasting and support hub became operational in February, and brings supply closer to our international master franchise partners. The new location enables road freight for key markets, reducing freight times and supporting more frequent ordering almost 70% of orders are now using road freight.

Peter George: Together with continued digital expansion and operating improvements, our focus is on converting Beefy's strong customer demand and network sales growth into improved store level and group profitability. Crust Gourmet Pizza delivered a strong return to growth in FY26, with network sales increasing 3.1% and same store sales increasing 0.3%, compared with declines in both measures in the prior year. This improvement reflects additional outlets, new franchise partners, and multi-site operators, combined with stronger customer engagement. Customer count increased 3.2%, compared with a decline of 2.7% in the prior comparative period. Our focus is to build further on this stronger base. Crust Gourmet Pizza is concentrating on its core product range and the key sporting and celebration occasions for which the brand is well-positioned. Limited time offers will continue to use existing ingredients and familiar flavor profiles helping to generate consumer interest without adding unnecessary complexity or cost for franchise partners.

Speaker #1: The hub has also provided greater supply chain resilience during recent geopolitical disruption in the region. Overall, international revenue was 11.3, which was down 2.1%, as the higher franchise-related income was offset by lower coffee sales during the transition to the new supply model, and the broader disruption in the market.

Speaker #1: With the Turkey hub operational and the international network growing again, our priority now is to convert the improved supply platform into stronger service further outlet growth and sustainable earnings.

Speaker #1: On the organization structure, we implemented the new brand-aligned operating model at the end of FY26, bringing accountability and decision-making closer to individual brands and franchise partners.

Speaker #1: Each core brand is now led by an executive general manager, accountable for performance and responsible for coordinating operations, marketing, network development, and supply chain support.

Speaker #1: Central functions continue to provide specialist expertise and leverage group scale. The new structure provides clearer ownership of brand performance, more direct access to decision-makers, and faster resolution of store-level issues.

Peter George: We are also developing major partnership opportunities intended to broaden awareness and extend the brand's customer reach. Overall, the opportunity is to convert across improving customer engagement and network growth into stronger franchise partner profitability and sustainable growth. Turning to Firehouse Subs, I am very pleased to note that we achieved a successful Australian launch, providing an encouraging foundation for the next stage of the rollout. The first restaurant opened at Mount Gravatt in June, and grand opening day trading was particularly strong, with over 750 transactions recorded. Our immediate focus is building the site pipeline with discipline. Two additional South East Queensland locations are currently in final stages of lease negotiations and are targeting openings in Q2 of FY27. A further location is in the pipeline for December, supporting our target of having four Australian restaurants on the ground by the end of calendar 2026.

Speaker #1: Taken together, these changes are focused on improving franchise partner outcomes. So with the new model implemented and key transformation program initiatives complete, the board has resumed the process to appoint a CEO to lead RFG's next phase of execution and growth.

Speaker #1: I will continue as executive chairman while this process is undertaken. I'll now hand over to Ryan to take you through the FY26 financial results in more detail.

Speaker #2: Thank you, Peter. Turning to the group's profit and loss performance for FY26, underlying revenue was 99.6 million, down 3% on the year. This reflected higher company store revenue from beefies and T-bay, being offset by lower franchise-related income and lower coffee revenue.

Speaker #2: Together with also cycling of 3.3 million in insurance proceeds and deferred franchise income that was recognized in FY25. Gross profit declined to 64.3 million, as coffee margins were affected by higher green bean costs and our decision to delay domestic wholesale price increases for the first eight months of the financial year, as we supported our franchise partners.

Peter George: While the rollout remains in its early days, initial performance is encouraging in the context of the longer-term rollout plan, including the target of 15 restaurants by December of next year. We remain committed to investing USD 4 million per year over the next two financial years. Our approach will remain disciplined and focused on site selection, repeatable store economics, and appropriate returns on capital as the network develops. Our international division returned to outlet growth during FY26, with the network increasing from 528 outlets in December to 536 at year-end. This growth included additional Gloria Jean's Coffees locations across Turkey and North Cyprus. We have introduced incentive programs to support further expansion by eligible international franchise partners, with one market signed and two more in progress. The Turkey roasting and support hub became operational in February and brings supply closer to our international master franchise partners.

Speaker #2: Pricing was adjusted in March, with a greater benefit expected in financial year 2027, as the input prices stabilized. Whilst at the top line our expenses increased, reflective of higher company store costs, and lower lease impairment benefits, if we exclude those two items, our expenses were actually 3.5 million lower, which were inclusive of the payroll savings that came out of the cost rationalization program.

Speaker #2: Underlying EBITDA, as we've mentioned, came in at 20.3 million, within the guidance range provided in February, and importantly, we were pleased to see second-half EBITDA increase 20.9% to 11.1 million, as we started to see the transformation benefits emerge.

Peter George: The new location enables road freight for key markets, reducing freight times and supporting more frequent ordering. Almost 70% of orders are now using road freight. The hub has also provided greater supply chain resilience during recent geopolitical disruption in the region. Overall, international revenue was 11.3%, which was down 2.1%, as the higher franchise-related income was offset by lower coffee sales during the transition to the new supply model and the broader disruption in the market. With the Turkey hub operational and the international network growing again, our priority now is to convert the improved supply platform into stronger service, further outlet growth, and sustainable earnings. On the organization structure, we implemented the new brand-aligned operating model at the end of FY26, bringing accountability and decision-making closer to individual brands and franchise partners.

Speaker #2: Underlying impact was at 7.8 million, and statutory impact improved to 1.1 million off the back of a loss of 14.9 million in financial year 2025.

Speaker #2: The reconciliation between our underlying and statutory results is provided both on the following slide and with our detailed reconciliations in the appendix. Moving to slide 20, this slide reconciles our statutory EBITDA of 14.9 million to our underlying EBITDA of 20.3 million.

Speaker #2: The principal adjustments relate to our market fund timing, the company store strategic reset, investment in firehouse subs, the international supply hub, and the transformation program.

Speaker #2: These investments and restructuring actions are intended to reduce recurring costs, improve future cash generation, and establish new growth platforms. Statutory impact, as we noted, materially improved to 1.1 million, compared with a 14.9 million loss in FY25.

Peter George: Each core brand is now led by an Executive General Manager accountable for performance and responsible for coordinating operations, marketing, network development, and supply chain support. Central functions continue to provide specialist expertise and leverage group scale. The new structure provides clearer ownership of brand performance, more direct access to decision-makers, and faster resolution of store-level issues. Taken together, these changes are focused on improving franchise partner outcomes. With the new model implemented and key transformation program initiatives complete, the board has resumed the process to appoint a CEO to lead RFG's next phase of execution and growth. I will continue as Executive Chairman while this process is undertaken. I will now hand over to Ryan to take you through the FY26 financial results in more detail.

Speaker #2: Moving to slide 21, and talking about our café coffee and bakery segment, our café coffee and bakery segment accounts for approximately 70% of domestic network sales, with the financial year 2026 performance affected by the reduction in outlet numbers.

Speaker #2: Network sales were 349 million, down 4.9%, while same store sales declined a more moderate 1.3%. The network ended the period with 406 outlets, which was 21 lower than December, largely reflecting the closure of lower-performing company-owned and non-core locations.

Speaker #2: Pleasingly, three new outlets were open during the period, including one donut king and two glory jeans outlets. Despite lower customer count, our average weekly sales in this segment increased 2% and average transaction value increased 3.8%, setting the segment up for improved performance moving forward.

Ryan Chellingworth: Thank you, Peter. Turning to the group's profit and loss performance for FY26, underlying revenue was AUD 99.6 million, down 3% on the year. This reflected higher company store revenue from Beefy's and Cibo being offset by lower franchise-related income and lower coffee revenue, together with also cycling of AUD 3.3 million in insurance proceeds and deferred franchise income that was recognized in FY25. Gross profit declined to AUD 64.3 million as coffee margins were affected by higher green bean costs and our decision to delay domestic wholesale price increases for the first eight months of the financial year as we supported our franchise partners. Pricing was adjusted in March with a greater benefit expected in financial year 2027 as the import prices stabilized. Whilst at the top line, our expenses increased, reflective of higher company store costs and lower lease impairment benefits.

Speaker #2: Underlying revenue was 88.3 million, and underlying EBITDA was 16.1 million. Earnings were affected by the lower network sales, our reduced coffee margins, and the delayed commissioning of the Turkey hub.

Speaker #2: Domestic wholesale coffee pricing, as we've noted, was adjusted in March, and we've also seen green bean costs stabilize during the second half, which provide a better margin platform as we enter financial year 2027.

Speaker #2: Moving to QSR, we were very pleased to see QSR return to growth in FY26. Network sales increased 1.6% to 141 million, and same store sales increased 0.7%.

Speaker #2: The improvement was supported by customer count growth of 1.5%, the easing of aggressive competitor discounting in the pizza segment, and the opening of four new crust stores during the year.

Speaker #2: Average weekly sales and average transaction value also increased, providing further evidence of improving network health. Underlying revenue was 11.3 million, down 4.5%, reflecting lower franchise-related income; however, the benefit of cost reduction initiatives more than offset that decline with underlying EBITDA increasing 3.1% to 4.1 million.

Ryan Chellingworth: If we exclude those two items, our expenses were actually AUD 3.5 million lower, which were inclusive of the payroll savings that came out of the cost rationalization program. Underlying EBITDA, as we have mentioned, came in at AUD 20.3 million, within the guidance range provided in February. Importantly, we were pleased to see H2 EBITDA increase 20.9% to AUD 11.1 million as we started to see the transformation benefits emerge. Underlying NPAT was at AUD 7.8 million, and statutory NPAT improved to AUD 1.1 million off the back of a loss of AUD 14.9 million in financial year 2025. The reconciliation between our underlying and statutory results is provided both on the following slide and with our detailed reconciliations in the appendix. Moving to slide 20. This slide reconciles our statutory EBITDA of AUD 14.9 million to our underlying EBITDA of AUD 20.3 million.

Speaker #2: With sales and earnings back in growth, our QSR business enters FY27 from a stronger base. Moving to slide 23 in the cash flow, operating cash flow was 9.3 million for financial year 2026, with the full year decline primarily reflecting first half headwinds.

Speaker #2: Importantly, and pleasingly, cash generation improved strongly in the second half. Operating cash flow increased to 7.4 million, compared with 1.9 million in the first half and 6.6 million in the prior comparative period.

Speaker #2: The second half resolved benefit second half resolved benefited from improved collections and supply payment timing, notwithstanding that 1.4 million was paid in relation to one-off redundancy payments associated with the transformation program.

Ryan Chellingworth: The principal adjustments relate to our market fund timing, the company store's strategic reset, investment in Firehouse Subs, the international supply hub, and the transformation program. These investments and restructuring actions are intended to reduce recurring costs, improve future cash generation, and establish new growth platforms. Statutory NPAT, as we noted, materially improved to AUD 1.1 million, compared with a AUD 14.9 million loss in FY25. Moving to Slide 21, and talking about our Cafe Coffee and Bakery segment. Our Cafe Coffee and Bakery segment accounts for approximately 70% of domestic network sales, with the financial year 2026 performance affected by the reduction in outlet numbers. Network sales were AUD 349 million, down 4.9%, while same store sales declined a more moderate 1.3%. The network ended the period with 406 outlets, which was 21 lower than December, largely reflecting the closure of lower performing company-owned and non-core locations.

Speaker #2: Capex reduced to 2.6 million, as we prioritized transformation initiatives, and lease payments declined by 1.6 million, as the company store strategic reset progressed. The group drew down a further 7.5 million in the second half, as part of the new debt facility, to fund strategic priorities and ended FY26 with a total cash balance of 24.2 million, including unrestricted cash of 14.4 million.

Speaker #2: The second half improvement provides a stronger cash generation base entering financial year 2027, with further benefits expected from transformation savings and reduced company store cash outflows.

Speaker #2: On slide 24, we have the balance sheet. The balance sheet remains stable following the February refinancing. We hold 14.4 million of unrestricted cash, with net debt of 20.68 million which reflects our borrowings of 41.2 million.

Speaker #2: Working capital reduced by 3.7 million across the year, supported by improved receivables recovery, whilst our inventory increased following the commissioning of the international supply hub.

Ryan Chellingworth: Pleasingly, three new outlets were opened during the period, including one Donut King and two Gloria Jean's outlets. Despite lower customer count, our average weekly sales in this segment increased 2%, and average transaction value increased 3.8%, setting the segment up for improved performance moving forward. Underlying revenue was AUD 88.3 million, and underlying EBITDA was AUD 16.1 million. Earnings were affected by the lower network sales, our reduced coffee margins, and the delayed commissioning of the Turkey hub. Domestic wholesale coffee pricing, as we've noted, was adjusted in March. We've also seen green bean costs stabilize during the H2, which provide a better margin platform as we enter FY27. Moving to QSR. We were very pleased to see QSR return to growth in FY26. Network sales increased 1.6% to AUD 141 million, and same store sales increased 0.7%.

Speaker #2: Lease-related assets and liabilities declined, as the company store strategic reset progressed. The new 41.2 million debt facility extends to August 2027, and as a result, the debt has been reclassified as a non-current liability.

Speaker #2: The group remained compliant with all financial covenants throughout the period, and the refinancing provides greater funding certainty as we complete the transformation program and invest selectively in future growth.

Speaker #2: Onto slide 25, and we're talking about our strategic growth funding. The February refinancing, as we noted, provides for funding stability and liquidity required to execute our strategic priorities.

Speaker #2: Capital allocation remains disciplined, with our priorities improving our core brand network sales and franchise partner performance, building on the second half cash flow improvements, and maintaining appropriate balance sheet strength and liquidity.

Ryan Chellingworth: The improvement was supported by customer count growth of 1.5%, the easing of aggressive competitor discounting in the pizza segment, and the opening of four new Crust stores during the year. Average weekly sales and average transaction value also increased, providing further evidence of improving network health. Underlying revenue was AUD 11.3 million, down 4.5%, reflecting lower franchise-related income. However, the benefit of cost reduction initiatives more than offset that decline with underlying EBITDA increasing 3.1% to AUD 4.1 million. With sales and earnings back in growth, our QSR business enters FY27 from a stronger base. Moving to slide 23 and the cash flow. Operating cash flow was AUD 9.3 million for FY26, with the full-year decline primarily reflecting H1 headwinds. Importantly and pleasingly, cash generation improved strongly in the H2.

Speaker #2: The facility also supports the continued firehouse subs rollout in Southeast Queensland, and the development of the international supply hub as a platform for international growth.

Speaker #2: With that, I will now hand back to Peter.

Speaker #1: Thank you, Ryan. And just on slide 26, a few comments on the outlook and trading for the first eight weeks of FY27. So the first eight weeks of FY27 continue to reflect challenging consumer conditions, core brand network sales were down 2.6%, again influenced by the smaller outlet base while same store sales were slightly down 0.4 of a percent, as the challenging current macroeconomic conditions are mitigated to some extent by the rollout of our revised marketing initiatives.

Speaker #1: As I previously noted, donut king and Brumbies are, however, showing positive momentum with several identified marketing initiatives set to launch across the brand shortly.

Ryan Chellingworth: Operating cash flow increased to AUD 7.4 million, compared with AUD 1.9 million in the H1 and AUD 6.6 million in the prior comparative period. The H2 result benefited from improved collections and supplier payment timing, notwithstanding that AUD 1.4 million was paid in relation to one-off redundancy payments associated with the transformation program. CapEx reduced to AUD 2.6 million as we prioritize transformation initiatives, and lease payments declined by AUD 1.6 million as the company store's strategic reset progressed. The group drew down a further AUD 7.5 million in the H2 as part of the new debt facility to fund strategic priorities, and ended FY26 with a total cash balance of AUD 24.2 million, including unrestricted cash of AUD 14.4 million. The H2 improvement provides a stronger cash generation base entering FY27, with further benefits expected from transformation savings and reduced company store cash outflows.

Speaker #1: We expect franchise partner economics to benefit progressively from improved operational processes and the back-to-basics marketing approach. At group level, the March wholesale coffee price increase and improved green bean procurement are expected to support gross margins while cost initiatives are targeted to deliver savings of 5 to 7 million in the full year of FY27.

Speaker #1: Cash flow is expected to benefit from the stronger second half exit rate and further reductions in company store cash outflows. Firehouse subs remains an important growth opportunity with three additional restaurants targeted by December of this year, and 15 restaurants in total targeted by December of next year.

Speaker #1: Overall, RFG enters FY27 with a simpler operating model and improved cost base and clear opportunities to build on the progress achieved during the second half.

Speaker #1: Now, before opening for questions, I would like to just take an opportunity to thank our franchise partners and team members for their contributions during a year of significant change.

Ryan Chellingworth: On slide 24, we have the balance sheet. The balance sheet remains stable following the February refinancing. We hold AUD 14.4 million of unrestricted cash, with net debt of AUD 20.68 million, which reflects our borrowings of AUD 41.2 million. Working capital reduced by AUD 3.7 million across the year, supported by improved receivables recovery, whilst our inventory increased following the commissioning of the international supply hub. Lease-related assets and liabilities declined as the company store's strategic reset progressed. The new AUD 41.2 million debt facility extends to August 2027, and as a result, the debt has been reclassified as a non-current liability. The group remained compliant with all financial covenants throughout the period, and the refinancing provides greater funding certainty as we complete the transformation program and invest selectively in future growth. On to slide 25. We're talking about our strategic growth funding.

Speaker #1: While FY26 was challenging, RFG delivered underlying EBITDA within guidance, substantially completed the transformation program, and generated strong improvements in second half earnings and cash flow.

Speaker #1: We enter FY27 with a simpler operating model and more focused portfolio and clear opportunities across our core brands, firehouse subs, and our international operations.

Speaker #1: Our priority to repeat is converting this stronger platform into improved franchise partner economics, sustainable earnings growth, and stronger cash generation. Thank you all for your continued support, and we will now open the line for questions.

Speaker #2: Just to add to Peter's comment, in terms of asking a question, if you'd like to add the question to the chat within the forum here, we will then read that question out and answer.

Ryan Chellingworth: The February refinancing, as we noted, provides the funding stability and liquidity required to execute our strategic priorities. Capital allocation remains disciplined with our priorities: improving our core brand network sales and franchise partner performance, building on the H2 cash flow improvements, and maintaining appropriate balance sheet strengths and liquidity. The facility also supports the continued Firehouse Subs rollout in Southeast Queensland, and the development of the international supply hub as a platform for international growth. With that, I will now hand back to Peter.

Speaker #1: We have a question from Larry Gandler. Can you indicate what sort of P&L investment will be required for firehouse and FY27?

Peter George: Thank you, Ryan. Just on slide 26, a few comments on the outlook and trading for the first 8 weeks of FY27. The first 8 weeks of FY27 continue to reflect challenging consumer conditions. Core brand network sales were down 2.6%, again influenced by the smaller outlet base, while same-store sales were slightly down 0.4% as the challenging current macroeconomic conditions are mitigated to some extent by the rollout of our revised marketing initiatives. As I previously noted, Donut King and Brumby's Bakery are, however, showing positive momentum with several identified marketing initiatives set to launch across the brand shortly. We expect franchise economics to benefit progressively from improved operational processes and the back to basics marketing approach.

Speaker #2: I'm happy to take that one if you like. So Larry, for FY27, the given that firehouse will still be in its initial rollout phase, we won't be including that in our underlying earnings.

Speaker #2: We do expect as we've noted previously that we will be required to invest 4 million in capital contributions throughout the next two years to continue with that rollout.

Speaker #2: The P&L, though, will be restricted to our non-core earnings for that period, as we roll the stores out.

Peter George: At group level, the March wholesale coffee price increase and improved green bean procurement are expected to support gross margins while cost initiatives are targeted to deliver savings of AUD 5 million to AUD 7 million in the full year of FY27. Cash flow is expected to benefit from the stronger H2 exit rate and further reductions in company store cash outflows. Firehouse Subs remains an important growth opportunity, with 3 additional restaurants targeted by December of this year and 15 restaurants in total targeted by December of next year. Overall, RFG enters FY27 with a simpler operating model, an improved cost base, and clear opportunities to build on the progress achieved during the H2. Before opening for questions, I would like to just take an opportunity to thank our franchise partners and team members for their contributions during a year of significant change.

Speaker #1: Question from James Middleton. Peter, when I listened to some of the transformation activities, why were some of these changes not able to be made in earlier years?

Speaker #1: I guess the there are multiple reasons for that. I think we saw ourselves in 2023 as entering out of restructuring and into growth. We structured the company and the people in it to pursue growth opportunities.

Speaker #1: Probably one of the costs of doing that was that we took our eye off the ball of our core business, which is looking after our existing franchisees, and many of the activities undertaken in the last six months or so are designed to repair the damage that was caused by that change of priorities and to reinforce that as our number one priority.

Peter George: While FY26 was challenging, RFG delivered underlying EBITDA within guidance, substantially completed the transformation program, and generated strong improvements in H2 earnings and cash flow. We enter FY27 with a simpler operating model, a more focused portfolio, and clear opportunities across our core brands, Firehouse Subs and our international operations. Our priority to repeat is converting this stronger platform into improved franchise partner economics, sustainable earnings growth, and stronger cash generation. Thank you all for your continued support. We will now open the line for questions.

Speaker #2: We've just had a follow-up question from Larry on that first question around firehouse. It's just asked if we can indicate the magnitude on the P&L.

Speaker #2: Larry, I think the best way to think about that is in our FY26 results and in the bridge from statutory to underlying, we noted 1.8 million was incurred in relation to the setup of firehouse.

Speaker #2: We would expect that to improve in FY27 as we roll the stores out. The I think the important thing that we notice, look, our we've been very encouraged by the trading of our store at Mount Gravat in its first eight weeks of operation.

Speaker #2: And so we expect to see that result improve on what happened in FY26.

Ryan Chellingworth: Just to add to Peter's comment. In terms of asking a question, if you would like to add the question to the chat within the forum here, we will then read that question out and answer.

Speaker #1: We have a question from Ken Wagner. How significant was the impact on the turkey hub on the reduction in international sales? I guess it wasn't it was the change over from a very inefficient hub that we had in Jabay and a period during which product was shipped directly from Australia while the turkey hub was put in place.

Speaker #1: And it was responsible for most of that decline in revenue that we referred to earlier. That mix-up. When you ship product from here, buy ship, and particularly in the aftermath of the Iran situation, it takes quite a long time to reach its destination.

Peter George: We have a question from Larry Gandler. "Can you indicate what sort of P&L investment will be required for Firehouse in FY27?

Ryan Chellingworth: I am happy to take that one if you like. Larry, for FY27, given that Firehouse will still be in its initial rollout phase, we will not be including that in our underlying earnings. We do expect, as we have noted previously, that we will be required to invest AUD 4 million in capital contributions throughout the next two years to continue with that rollout. The P&L, though, will be restricted to our non-core earnings for that period as we roll the stores out.

Speaker #1: So I think it would be regarded as a blip, and it certainly a very large part of our coffee sales come from a region within driving distance of Turkey.

Speaker #1: We expect that now that it is implemented, those product problems won't occur. And another one from Larry. How significant will be the store closures in FY27?

Speaker #1: Meaning previous full-year effect plus new closures.

Speaker #2: So I guess the broad rule of thumb is for each store that closes, the headline number is you're probably lose 10,000 dollars a week of network sales, which means that RFG will lose its franchise service fee on that.

Peter George: Question from James Middleton. "Peter, when I listen to some of the transformation activities, why were some of these changes not able to be made in earlier years?" Well, I guess there are multiple reasons for that. I think we saw ourselves in 2023 as entering out of restructuring and into growth. We structured the company and the people in it to pursue growth opportunities. Probably one of the costs of doing that was that we took our eye off the ball of our core business, which is looking after our existing franchisees. And many of the activities undertaken in the last six months or so are designed to repair the damage that was caused by that change of priorities and to reinforce that as our number one priority.

Speaker #2: It's frequently not that simple, though, because the stores that close tend to go through a period of financial decline during which we typically provide support of one kind or another, either by giving them free coffee, giving them subsidies on their rent, giving them holidays from their fee paying.

Speaker #2: So the P&L effect is nowhere near as great as the sales effect, typically, from the closure of low-performing stores. But the broad rule of thumb is that you'll lose around 10 grand a year sorry, a week for every store that isn't there that was there last year.

Speaker #2: The next question that's come through is, is Brumby's off the agenda for disposal?

Speaker #1: The answer to that is yes, it is. The process was tested fairly extensively at the appetite of the market for sale. Brumby's despite only being a 60-store network is quite a significant profit contributor.

Ryan Chellingworth: We have just had a follow-up question from Larry Gandler on that first question around Firehouse Subs. Larry, the best way to think about that is in our FY26 results and in the bridge from statutory to underlying. We noted AUD 1.8 million was incurred in relation to the setup of Firehouse Subs. We would expect that to improve in FY27 as we roll the stores out. The important thing that we note is, we have been very encouraged by the trading of our store at Mount Gravatt in its first 8 weeks of operation. We expect to see that result improve on what happened in FY26.

Speaker #1: And therefore, in order to sell it, you would have to sell it at a multiple of those earnings that didn't dilute the overall position of the company.

Speaker #1: And we didn't get offers in that region. We're working on a number of new strategies to start that network growing again. It's growth historically has been constrained by its difficulty in finding bakers, which is a declining trade, as you know.

Speaker #1: We're working on models that are less reliant on bakers such as having a central baking facility delivering to multiple stores using frozen and par-baked bread to minimize that reliance.

Peter George: We have a question from Ken Wagner. How significant was the impact of the Turkey hub on the reduction in international sales? I guess it was the changeover from a very inefficient hub that we had in Dubai and a period during which product was shipped directly from Australia while the Turkey hub was put in place, and it was responsible for most of that decline in revenue that we referred to earlier. That mix-up. When you ship product from here by ship, and particularly in the aftermath of the Iran situation, it takes quite a long time to reach its destination. I think it would be regarded as a blip, and it is certainly a very large part of our coffee sales come from a region within driving distance of Turkey. We expect that now that it is implemented, those problems won't occur.

Speaker #1: We have aspirations that this network start growing again quite strongly in the next three years.

Speaker #2: Next question from Ken Wagner. How many Tchibo stores are left and what are your plans for them?

Speaker #1: It's a good question. We have four company stores and I think nine trading franchise stores. We are in discussion with a number of parties, including some of the Tchibo franchisees, about selling the remaining stores.

Speaker #1: That strategy, which, as you know, was based on converting the stores into Gloria Jean's outlets, was a strategy that didn't go down well with the network or indeed with both political parties and the South Australian Parliament.

Speaker #1: And we think that probably the best outcome for that is that it is divested.

Peter George: Another one from Larry Gandler. How significant will be the store closures in FY27? Meaning previous full-year effect plus new closures. I guess the broad rule of thumb is for each store that closes, the headline number is you will probably lose AUD 10,000 a week of network sales, which means that RFG will lose its franchise service fee on that. It is frequently not that simple, though, because the stores that close tend to go through a period of financial decline, during which we typically provide support of one kind or another, by giving them free coffee, giving them subsidies on their rent, giving them holidays from their fee paying. So the P&L effect is nowhere near as great as the sales effect, typically from the closure of low-performing stores.

Speaker #2: That's all the questions we've had come through for the moment. We would just give a minute or two just to see if anything further comes through.

Speaker #1: That appears to be the end of the questions. And thank you, everyone, for your attendance on this webinar. And we shall see many of you on our road trip in a couple of weeks' time.

Speaker #1: Thanks again.

Peter George: The broad rule of thumb is that you lose around AUD 10,000 a week for every store that is not there that was there last year.

Ryan Chellingworth: The next question that is come through is: Is Brumby's off the agenda for disposal?

Peter George: The answer to that is yes, it is. The process was tested fairly extensively, the appetite of the market for sale. Brumby's, despite only being a 60-store network, is quite a significant profit contributor, and therefore, in order to sell it, you would have to sell it at a multiple of those earnings that did not dilute the overall position of the company, and we did not get offers in that region. We are working on a number of new strategies to start that network growing again. Its growth historically has been constrained by its difficulty in finding bakers, which is a declining trade as you know. We are working on models that are less reliant on bakers, such as having a central baking facility delivering to multiple stores using frozen and par-baked bread to minimize that reliance.

Peter George: We have aspirations that this network start growing again quite strongly in the next three years.

Ryan Chellingworth: Next question from Ken Wagner: How many Cibo stores are left, and what are your plans for them?

Peter George: It's a good question. We have four company stores and I think nine franchise stores. We are in discussion with a number of parties, including some of the Cibo franchisees about selling the remaining stores. That strategy, which as you know, was based on converting the stores into Gloria Jean's outlets, is a strategy that didn't go down well with the network or indeed with both political parties in the Parliament of South Australia. We think that probably the best outcome for that is to divest them.

Ryan Chellingworth: That's all the questions we've had come through for the moment. We will just give a minute or two just to see if anything further comes through.

Peter George: That appears to be the end of the questions. Thank you everyone for your attendance on this webinar. We shall see many of you on our road trip in a couple of weeks' time. Thanks again.

Operator: Thank you, Will.

Ryan Chellingworth: Thank you, Will.

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Q4 2026 Retail Food Group Ltd Earnings Call

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