Franchisor of the Donut King and Brumby’s Bakeries, Retail Food Group Ltd
(ASX:RFG), says it expects an adverse impact on revenue as its franchises battle with unfavourable weather conditions across Queensland and New South Wales.
The company expects the vast majority of its 320 outlets within these states to be impacted by recent flooding.
In its 2010 annual general meeting Retail Food Group forecast its first half net profit to be 10 to 15 per cent higher than the $12.5 million recorded in the previous corresponding period.
However, the company says in light of the volatile retail environment before and after the flood crisis it expects revenue to suffer, adding it is too early to provide full year guidance.
Retail Food Group generated a net profit of $26 million in the 2010 financial year.
