Announcement PDF Retail Food Group Limited Level 4, 35 Robina Town Centre Drive Robina Qld 4226 19 February 2025 1H25 Results Presentation Please find enclosed for release to the market Retail Food Group Limited’s 1H25 Results Presentation. This announcement has been authorised for release by the Board of Directors. ENDS Investor Enquiries: Robert Shore, CFO 0401 229 528 Robert.shore@rfg.com.au About Retail Food Group Limited: RFG is a global food and beverage company headquartered in Queensland. It is Australia’s largest multi-brand retail food franchise manager and is the owner of iconic brands including Gloria Jean’s, Donut King, Brumby’s Bakery, Crust Gourmet Pizza and Beefy’s Pies. The Company holds the exclusive licence to grow Firehouse Subs restaurants in Australia and expects to open the first restaurant in 2025. RFG also distributes high quality pies from our Sunshine Coast Bakery and coffee through our Sydney Roastery. For more information about RFG visit: www.rfg.com.au. Sign up for investor alerts at: https://investorhub.rfg.com.au/auth/signup 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Financial Results Agenda 1. 2. 3. Business update Interim financial performance Q&A Results Webinar Matt Marshall Chief Executive Officer Wednesday 19 February 10:00am AEDT Conference call: https://s1.c-conf.com/diamondpass/10045327-5laeu6.html Webinar: https://webcast.openbriefing.com/rfg-hyr-2025/ Rob Shore Chief Financial Officer 2 RFG continued to enhance our network and deliver growth in the first half. Today we announce a major new brand launch 3 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Continuing To Deliver Growth In 1H25 750 $66.5m 25 $16.0m DOMESTIC TRADING OUTLETS2 UP 9 ON 30 JUNE NEW DOMESTIC TRADING OUTLETS OPENED1 $257.1m DOMESTIC NETWORK SALES UP 0.9% ON PCP DRIVEN BY CORE CCB BRANDS UP 4.8% $229.6m CORE BRAND SAME STORE SALES DOWN 0.5% DUE TO QSR SEGMENT. CORE CCB +1.3% (1) (2) Domestic outlets only, excludes acquired outlets Trading outlets as at 31 December 2024 and include CIBO Espresso which completed on that day UNDERLYING REVENUE UP 24.7% ON PCP UNDERLYING EBITDA UP 4.2% ON PCP $7.3m STATUTORY NET PROFIT AFTER TAX UP 73.8% ON PCP $9.8m UNDERLYING OPERATING CASH INFLOWS DOWN DUE TO TIMING DIFFERENCES 4 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Key Takeaways Continuing to Deliver Growth • • • • • (1) (2) (3) Network Sales Growth of +0.9% on PCP despite weak retail environment Underlying Revenue Growth +24.7% on PCP Network Health Improved • Average Weekly Sales1 up +3.4% on PCP • • Closures in core brands <4% of network. 84% of closures were low performing stores2 or non-core brand closures Signed key new growth driver – Firehouse Subs following more than 12 months of extensive diligence • Growth opportunity clear in our core brands - and now Firehouse Subs New trading outlet AWS up +35.2% on closed core outlets3 • Rationalisation of non-core brands continued with sales of Café2U NZ (H1FY25) and UK (H2FY25). Portfolio remains under review • IT investments plan on track with launch of Beefy’s mobile app and growth in DK Occasions in H1 Underlying EBITDA Growth +4.2% on PCP • Acquired CIBO Espresso completed on 31 December 2024, no EBITDA contribution to H1 • 48 Franchise Partner renewals completed • Multi-Site Operator (MSO) program delivered 6 new outlets, with our most experienced operators, with a further MSO pipeline of 21 stores underway Retail conditions are expected to improve with more favourable macro economic conditions in the near term Delivering on New Strategy AWS is inclusive of network sales generated by Rack’em Bones BBQ Ribs virtual brand within an existing physical pizza brand outlet Low performing: CCB <$10k AWS, QSR <$12k AWS New stores AWS excludes first week of trading and closed stores AWS excludes last week of trading. Excludes Rack’em Bones 5 1H25 FINANCIAL RESULTS| FEBRUARY 2025 About Retail Food Group Retail Food Group is a global food and beverage company headquartered in Queensland, Australia. RFG is Australia’s largest multi-brand retail food and beverage franchise owner with a portfolio of quality franchise brands under its ownership. 30 >40m COUNTRIES DOMESTIC CONSUMER TRANSACTIONS 5 >$500m CORE BRANDS DOMESTIC NETWORK SALES 7000 c.1300 ESTIMATED DOMESTIC NETWORK EMPLOYEES GLOBAL TRADING OUTLETS 6 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Our Core Brands 203 7.9m 136 5.3m TRADING OUTLETS TRADING OUTLETS 1. CUSTOMER COUNT CUSTOMER COUNT All figures weeks 1 – 26 of FY25 for domestic outlets unless otherwise noted, 75 3.9m TRADING OUTLETS CUSTOMER COUNT 12 0.6m 135 1.4m TRADING OUTLETS CUSTOMER COUNT TRADING OUTLETS CUSTOMER COUNT 7 1H25 FINANCIAL RESULTS| FEBRUARY 2025 1300+ RESTAURANTS AROUND THE WORLD COMING SOON IN AUSTRALIA FLAVOUR IS OUR MISSION 8 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Our Purpose, Vision and Values By putting the customer at the heart of our strategy, we have a clear framework for success OUR PURPOSE OUR VISION We strive for a positive customer experience in everything we do Our vision is to be the most accessible, easy to operate, and admired retail brand network OUR VALUES Act with integrity OUR STRATEGIC DRIVERS Great customer experiences A healthy network Stand taller together Make it easier Accelerated tech solutions Make it happen Growth focused High performing team Own it 9 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Strategic Growth Outlook GROW ENHANCE Established systems and improved network health as a platform for growth Building strength and scale in core brands to 200+ outlets each Strong innovation pipeline Store of the future program to enhance customer appeal International expansion of Gloria Jean’s and Donut King Beefy’s Pies outlet growth target to 50+ stores in three years Signed 20-year agreement to launch leading US Brand Firehouse Subs into Australia with 165 new stores in 10 years Investment in digital technology 10 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Delivering Our Growth Initiatives Continuing to strengthen and enhance our core business whilst delivering on new growth inititaitves GROW ENHANCE Achieved In Progress Achieved In Progress • Investment in new Apps (Beefy’s launched) • Beefy’s integration milestones delivered • International supply chain transformation • Beefy’s grown from 9 outlets to 12 since acquisition in Dec 2023 • Beefy’s growth to 50+ stores in 3 years • 3-year innovation pipeline • Consolidation of brands into core to build scale (ambition 200+ outlets) • Donut King Occasions launched • Voice of Customer platform 2H25 to drive improved customer experience • Acquisition of CIBO Espresso complete • Sale of C2U NZ (completed) and UK (contract signed) • Store of the future project (core brands) • MSO incentive program launched • Enhanced Franchise Partner execution program • 20-year partnership with RBI to exclusively launch Firehouse Subs in Australia. Refer separate ASX announcement • 179 franchise renewals since FY23 (48 in 1H25) • Elevating QSR customer offer across product, digital and store • Enhanced systems and improved network health providing a platform for growth Planned • International market expansion of Gloria Jean’s and Donut King 11 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance Our Network A customer led approach to building scale and relevance in our core brands CUSTOMER-LED INNOVATION STORE OF THE FUTURE • 3-year consumer-tested rolling innovation pipeline • Menu and product upgrades • New occasions and channels • Modern brand design with a cost-conscious approach • Refurbishment pipeline to enhance brand relevance • Simplified range, operations and customer messaging to drive retail execution standards TECHNOLOGY NETWORK HEALTH • Donut King Occasions launched in FY24 • Beefy’s App launched Jan 2025 • Donut King App launching in H2 • Kiosks and digital screens embedded in store design • Strengthening our pipeline with ambition for 200+ stores in core brands • Incentives for multi-site growth • Supplier and COGS management • Negotiated landlord outcomes for new sites and renewals 12 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Product Innovation Customer led insights driving a 3-year pipeline of product innovation • Sides menu Refresh • Lunch launch – Piadinas • New High-Protein bases launching 2H25 • New Valentine’s Day – Donut King Occasions • New premium indulgence donuts in 1H25 • Menu refresh underway 61 PRODUCTS LAUNCHED H1 41 PRODUCTS PLANNED FOR LAUNCH IN H2 • Pipeline of beverage innovation • New simplified menu • New Protein Chillers launched in 1H25 • Biscoff partnership for Christmas range • New Salted Caramel and White Chocolate Hot Cross Buns 13 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Store Of The Future Gloria Jean’s case study: refreshed brand positioning and simplified operations to attract a new growth customer 28 COUNTRIES 536 • Positioning Gloria Jean’s as a unique beverage destination • Technology integration in store and online • Cost conscious, behavioural-led store design to target new growth customer • Simplified offer, store operations and execution standards • New stores and refurbishment pipeline focus – upgrade ‘brown to orange’ • Global opportunity and focus for growth GLOBAL TRADING OUTLETS >11m CONSUMER TRANSACTIONS Design concept for illustrative purposes only. Not final design. 14 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Network Health Ongoing cost management and focus on the quality of the network LANDLORD ENGAGEMENT FRANCHISE RECRUITMENT • Average lease increase of 2.7% on annual rent across 55 renewals to the end of January 2025 • Lead generation increase of 24.6% in 1H25 vs PCP across Gloria Jean’s, Donut King and Crust • Further 38 negotiated lease terms approved • Focus on quality of leads has improved conversion by 20.6% (1H25 vs PCP) • Negotiated 1H25 landlord contributions of $1.0m (new sites and refurbishments) <3% AVERAGE ANNUAL RENTAL INCREASE BELOW 3% <1% COGS MANAGEMENT • Bi-annual price review process implemented with suppliers ANNUALISED IMPACT OF SUPPLIER PRICE INCREASES • Annualised impact of price increases from supplier submissions limited to 0.7% +20% • Coffee pricing to our Franchise Partners has been held constant since January 2023 IMPROVED FRANCHISE LEAD CONVERSION • Introduction of profiling tools to better align capability and quality of applicants to brands NETWORK GROWTH • 25 new sites delivered in 1H25 • New trading outlet AWS up +35.2% on closed core outlets • MSO program delivered 6 outlets in 1H25, with a further pipeline of 21 stores underway • Ambition for 200+ stores in core brands 15 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Enhance: Technology Investment to seamless customer experience across channels and unlock new revenue streams ENHANCED EXPERIENCE • Increased personalisation content across our platforms to drive marketing effectiveness • Integrated and seamless omnichannel experience to attract our growth customer across core CCB and QSR brands 120 IN STORE DIGITAL • Gloria Jean’s, Beefy’s and Donut King kiosks launched • New dynamic digital screen program launched into Beefy’s and Donut King stores IN APP PURCHASING PAYMENTS & 3PA OUTLETS LIVE ON DONUT KING OCCASIONS (DKO) ECOMM CHANNEL • App upgrades to facilitate in-App purchasing • 3PA integration increased via DoorDash and Menulog 315% • Beefy’s app is now live, new apps will now be rolled out to other brands • DKO new payment pathways to enhance customer transaction experience DKO GROWTH ON BLACK FRIDAY VERSUS SAME DAY IN PRIOR WEEK 16 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Grow: Beefy’s 3 new stores delivered since acquisition, on track for 15 by 30 June and with a new goal of 50 stores by 2028 $32.1k 1H25 AVERAGE WEEKLY SALES Cannon Hill, Brisbane 12 TRADING OUTLETS UP FROM 9 ON ACQUISITION IN DEC 2023 Newtown, Toowoomba 2 Beefy’s Capalaba lease signed (store 13) Sites in progress 15 TRADING OUTLETS INITIAL GOAL FOR 30 JUNE 2025 50 TRADING OUTLETS NEW GOAL FOR 2028 Ballina, NSW 17 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Grow: International Significant international growth opportunity for Gloria Jean’s and Donut King 536 28 TRADING OUTLETS LICENSED TERRITORIES 10 2 TRADING OUTLETS LICENSED TERRITORIES • Our Master Franchise Partner (‘MFP’) in Turkey is growing by approximately 40 stores annually • Global Supply Chain transformation underway including new supply hub closer to our MFPs to meet demand • Trusted partners ready for expansion into new markets • 4 existing Gloria Jean’s MFPs exploring international expansion across Europe • DK our priority for international expansion, potential exists within our existing Gloria Jean’s MFP network • Crust & Beefy’s can be grown internationally at the right time 18 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Grow: Firehouse Subs Signed an exclusive 20-year agreement for FHS in Australia, with 165 stores within 10 years 01 WE EXPECT TO OPEN THE FIRST RESTAURANT IN LATE 2025 Following extensive work on brand & operational training, supply chain and QA, the first restaurant is expected to open in South East Queensland in late 2025 04 20 YEAR TERM WITH EARLY EXIT OPTIONS RFG has agreed a 20 year development term, inclusive of our options, with scope to exit after year 3. RFG’s rights to open and franchise stores after 2027 are subject to the satisfaction of certain conditions. 02 TARGETING AT LEAST 165 NEW RESTAURANTS IN 10 YEARS We expect to open 15 company store restaurants in the first three years before commencing franchising in year four 05 INVESTMENT FUNDED BY DEBT DRAWDOWN OF $7.5M RFG will fund the investment through a debt drawdown of $7.5 million under our existing debt facilities. Future investment cashflows are expected to be funded from operating cashflows 03 INVESTMENT COMMITMENT OF US$4 MILLION PER YEAR FOR THREE YEARS RFG committed to funding rapid growth by investing US$4 million per year (total of US$12 million over first three years), increasing to US$5 million in years 4 to 6 06 SUB-FRANCHISING WILL COMMENCE IN YEAR FOUR RFG has the rights to sub-franchise the Firehouse Subs brand in Australia which is expected to commence in year four 19 1H25 FINANCIAL RESULTS| FEBRUARY 2025 1H25 Financial Results 750 $66.5m DOMESTIC TRADING OUTLETS (1) UNDERLYING REVENUE UP 9 SINCE 30 JUNE UP 24.7% ON PCP 3.9% $16.0m AVERAGE TRANSACTION VALUE UNDERLYING EBITDA UP ON PCP UP 4.2% ON PCP $257.1m $7.3m NETWORK SALES NPAT UP 73.8% ON PCP UP 0.9% ON PCP, DRIVEN BY 3.5% GROWTH IN CCB $229.6m CORE BRAND SAME STORE SALES DOWN 0.5% DUE TO QSR SEGMENT $9.8m UNDERLYING OPERATING CASH INFLOWS DOWN $2.3m ON PCP • Network Sales growth driven by CCB core brands and offset weaker QSR trading. • The loss of 17 low performing core outlets and 15 non-core outlets in H1 detracted from the overall result. • 25 new outlets opened in 1H25, with new store AWS up +35.2% on closed core stores2 including 16 outlets opened by multi-site operators • H1FY25 Network Sales were 3.2% up on H2FY24 • All core CCB brands were in Same Store Sales (‘SSS’) growth of up to 3.1% in H1 as we paused price management and focused on customer value proposition. Customer count remains challenged across all brands • The acquisition of CIBO Espresso completed on 31 December and did not contribute to H1 results (1) Trading outlets as at 31 December 2024 reflects the forward trading stores at the commencement of 2H25 and includes CIBO Espresso outlets as the acquisition completed on that day (2) New stores and closed stores AWS is calculated on full trading weeks. Excludes Rack’em Bones. Total closures include 17 low performing stores (defined as CCB <$10k AWS, QSR <$12k AWS), 15 non-core outlets and 6 other closures. 20 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Café, Coffee, Bakery (CCB) Performed Strongly $187.2m $165.1m DOMESTIC NETWORK SALES UP 3.5% ON PCP SAME STORE SALES2 UP 1.0% $16.9k 492 AVERAGE WEEKLY SALES UP 8% ON PCP 18.5m TRADING OUTLETS DOWN 1 SINCE 30 JUNE $10.14 CUSTOMER COUNT DOWN 2.5% ON PCP AVERAGE TRANSACTION VALUE UP 6.2% ON PCP $60.2m $14.4m UNDERLYING SEGMENT REVENUE UP 24.7% ON PCP SEGMENT EBITDA UP 16.6% ON PCP (1) All figures are for the 26 weeks ending 27 December 2025 compared to PCP (2) Same Store Sales excludes Beefy’s Pies acquired 11 December 2023. Beefy’s SSS compared to the pre-acquisition comparable period was 3.1% • CCB contributes c. 72.8% of group network sales with higher revenue conversion due to vertical integration of coffee and pie manufacturing and a higher % of Company Store operation (13.4% of CCB outlets) • Core CCB brands network sales were up 4.8% on PCP in 1H25 driven by Beefy’s Pies • SSS was positive for all Core CCB brands • Beefy’s Gympie saw a 37.4% reduction in trade following the opening of the Gympie ByPass, excluding this store SSS was up 5.7% on PCP • Net trading outlets in core CCB brands grew by 20 including the CIBO Espresso acquisition. Non-core brands declined by 21 21 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Café, Coffee, Bakery (‘CCB’) • The Black Friday and Cyber Monday period saw SSS up 2% on PCP2 Network Sales: Café, Coffee, Bakery • Maximised sales opportunity during seasonal peak over the Christmas holidays despite weaker retail conditions • Core brands continue to outperform legacy brands. Our brand consolidation project continued with 9 GJ mobile conversions in H1 • Newer, higher quality outlets continue to drive network sales growth. We continue to focus on in-store execution to raise brand averages 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 1 3 5 7 9 11 13 15 17 19 21 23 25 Jul Aug Sep Oct Nov Dec Jan 2023/24 Feb Mar Apr May Jun Jul Aug Sep Oct Nov • Michel’s Patisserie network sales declined 22.5% with SSS down 3.5%. As announced at our AGM, we continue to engage with the remaining 19 FPs regarding conversion opportunities to core, growth brands. Michel’s network sales in 1HFY25 were less than $7m and the financial impact is immaterial to group results Dec 2024/25 (1) Network sales based on unaudited reported sales by Franchise Partners and company outlets for weeks 1 – 52 of FY24 & 1 – 26 of FY25 (2) Black Friday and Cyber Monday period from Wk22 – Wk23 FY25 and Wk21 – Wk22 FY24 22 1H25 FINANCIAL RESULTS| FEBRUARY 2025 CIBO Update • CIBO Espresso is a boutique coffee franchise founded in Adelaide over 23 years ago • We acquired CIBO Espresso to accelerate our growth in South Australia and gain immediate access to 22 retail locations including 4 company owned outlets • RFG expects to invest c. $1.3m and work with each Franchise Partner to build a compelling conversion incentive including capex for rebranding and new equipment to unlock business growth $2.7m ACQUISITION CONSIDERATION 31 December 2024 COMPLETION OCCURRED • The transaction completed on 31 December 2024 • Initial meetings held with all CIBO Espresso Franchise Partners and will continue now completion has occurred • Shared services transition expected to be largely complete in Q3FY25 excluding IT • Four corporate stores will convert to Gloria Jean’s in Q4FY25 $1.2M - $1.8M ESTIMATED FY26 EBITDA POST SYNERGIES 22 TRADING OUTLETS 23 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Quick Service Restaurants (‘QSR’) Remains Challenged $69.9m • QSR contributed 27.2% of group network sales with no vertical integration of product sales into the network and only 6 Company Store operated outlets (2.3% of QSR outlets) resulting in a lower revenue conversion • Crust has seen a customer count decline in line with the category as families continue to pull back (total food service spend -10.7%, traffic -2.6%)2, but has minimsed the impact on Franchise Partner profitability. • By introducing Piadinas, we have successfully tapped into the lunchtime market, which has also boosted our pizza sales. This dual strategy has led to a 10.4% increase in Network Sales during lunchtime trade for Crust compared to the previous corresponding period (PCP) AVERAGE TRANSACTION VALUE UP 1.5% ON PCP • A reduction in Pizza Capers outlets (non-core) in FY24 is contributing to the net network sales decline $1.6m • Segment EBITDA fell in the period due to lease provision releases in the PCP which did not re-occur in 1HFY25 $66.5m DOMESTIC NETWORK SALES DOWN 5.4% ON PCP SAME STORE SALES1 DOWN 4.7% $18.5k 258 AVERAGE WEEKLY SALES DOWN 3.5% TRADING OUTLETS1 UP 10 SINCE 30 JUNE 1.6m $44.59 CUSTOMER COUNT DOWN 6.8% $6.4m UNDERLYING SEGMENT REVENUE UP 1.8% ON PCP SEGMENT EBITDA DOWN 46.6% (1) AWS, SSS & Trading outlets metrics for QSR are inclusive of Rack’em Bones BBQ Ribs as this brand operates within an existing Crust outlet (2) Circana, CREST®, Total Food Service Australia 24 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Quick Service Restaurants (‘QSR’) Network Sales1: Quick Service Restaurants (‘QSR’) • Stable outlet count in pizza brands (Crust up 2, Pizza Capers down 3, Rack’em Bones outlets up 11) • Maximised the sales opportunity during large sporting events with Network Sales up 19.5% on PCP for State of Origin Game 3 • Crustworthy continues to build product differentiation as we invest in technology and drive customer acquisition 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 1 3 5 7 9 11 13 15 17 19 21 23 25 Jul Aug Sep Oct Nov Dec Jan 2023/24 (1) (2) Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2024/25 Network sales based on unaudited reported sales by Franchise Partners and company outlets for weeks 1 – 52 of FY24 & 1 – 26 of FY25 Same Store Sales includes Rack ‘em Bones (‘REB’) because brand commenced trading in an existing Crust or Pizza Capers Franchise and provides an incremental benefit to existing Franchise Partners 25 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Income Statement UNDERLYING CONSOLIDATED INCOME STATEMENT • Underlying Revenue1 increased 24.7% on PCP with a larger corporate store portfolio and the acquisition of Beefy’s Pies offsetting lower franchise fees $millions 1H24 2H24 Change 1H25 1H24 vs 1H25 NETWORK SALES 254.8 249.1 257.1 0.9% • Underlying EBITDA2 of $16.0m up 4.2% on PCP with Beefy’s acquisition and a UNDERLYING REVENUE 53.4 61.5 66.5 24.7% As % of NS Franchise Related Income Company Stores Revenue Coffee Revenue Other revenue 20.9% 24.8 12.9 15.5 0.2 24.7% 23.6 22.3 15.4 0.2 25.9% 22.5 24.9 15.8 3.3 COGS (15.0) (18.8) (19.4) Company Store COGS Coffee COGS (4.0) (11.0) (8.1) (10.7) (9.3) (10.1) GP 38.4 42.8 47.2 GP Margin 71.9% 69.5% 70.9% EXPENSES (23.0) (28.9) (31.2) Payroll expenses Company Store expenses Lease Impairments Corporate Overheads (12.3) (9.1) 5.8 (7.4) (12.1) (14.1) 5.6 (8.4) (12.0) (15.0) 2.3 (6.4) UNDERLYING EBITDA 15.4 13.8 16.0 Depreciation & Amortisation Finance Costs Tax (4.2) (2.2) (0.9) (4.1) (2.5) (2.0) (4.2) (2.6) (2.7) UNDERLYING NPAT STATUTORY NPAT 8.0 4.2 5.2 1.6 6.5 7.3 range of initiatives offsetting the release of onerous lease provisions in PCP • EBITDA margins of 24.1% remain strong but fell slightly on PCP in line with increased weighting to corporate stores and Beefy’s acquisition • Company store expenses grew $5.9m on PCP, in line with the growth of outlets from 56 at 1H24 to 72 at 1H25. We leveraged our growing corporate store scale with expenses falling to 60.2% of company store revenue (PCP: 70.5%) • • • Corporate payroll costs were tightly controlled and remained in line with PCP despite wage inflation as we continued to deliver productivity improvements The group is head on lease at over 430 locations and management of leases is a core activity for the group. Lease impairments relate to the release of provisions for onerous leases and rental arrears owed by FPs which have been actively managed down through site exit or brand conversion and re-openings. As forecast, this fell significantly in H1FY25 as we have normalised our site portfolio Tax includes deferred tax movements, no material cash tax is payable and the Group has c. $97.2m of Australian tax losses to offset against future profits (1) Underlying Revenue is a non-IFRS measure not subject to audit. Underlying Revenue excludes restricted domestic marketing fund revenues (2) Underlying EBITDA is a non-IFRS measure not subject to audit. Underlying EBITDA excludes restricted domestic marketing funds, costs associated with M&A activity and is inclusive of AASB15 and AASB16 29.3% 22.9% 35.4% 4.2% -19.1% 73.8% 26 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Reported vs Underlying Results • Underlying Revenue excludes restricted domestic marketing fund revenues. • Underlying EBITDA excludes restricted domestic marketing funds, costs associated with M&A activity and is inclusive of AASB15 and AASB16 • Phase 1 of the reset of our USA operations has been completed and results are included in Underlying Revenue & Underlying EBITDA from 1H25. Phase 2 will be incorporated into our broader international growth strategy • Marketing funds represent timing differences between collection and expenditure of marketing levies which are restricted in use for brand marketing activities • Adjustments between statutory EBITDA and underlying EBITDA declined significantly to $0.8m in 1H25 (down 78% on PCP of $3.8m) • Statutory Net Profit After Tax of $7.3m increased 73.8% from $4.2m in the PCP. • Statutory NPAT generated in the first six months of FY25 has exceeded the Full Year NPAT generated in FY24 of $5.8m 27 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Financial Position CONSOLIDATED BALANCE SHEET $millions • Cash reserves of $21.4m (FY24: $20.6m) includes $17.7m of unrestricted cash (FY24: $18.3m) • Receivables increased slightly due to the timing of period end cut off date and we expect a reduction in 2HFY25 • Inventory levels increased with additional inventory on hand at Beefy’s Pies and receipt of green coffee bean raw materials on committed contracts. We continue to utilise green bean contracts at pricing locked in below current market rates for Q3FY25 • • • • Intangible includes the goodwill, brand and intellectual property rights associated with our various retail brands. There is no remaining asset value associated with the non-core Michel’s Patisserie, Café2U, The Coffee Guy or Pizza Capers brands. Other current liabilities includes the remaining $2.25m deferred consideration payable on the acquisition of Beefy’s Pies Our debt facility includes $15m undrawn and matures in April 2026. In 2H25, in connection with the consent for the investment in Firehouse Subs Australia, changes to covenants and other debt terms, RFG will make a placement of 625,000 ordinary shares at nil cost to Washington H. Soul Pattinson and Company Limited (the Company’s senior debt lender). The draw down of $7.5 million will occur in 2H25. Acquisition of CIBO Espresso completed on 31 December 2024, after the balance date, for total purchase price of $2.7m funded by cash on hand. 1H24 FY24 FY23 1H25 FY24 20.9 22.3 20.6 20.621.4 10.2 5.6 22.8 4.1 63.6 11.0 3.7 3.9 19.3 22.5 5.9 4.1 62.3 62.1 11.1 11.0 22.9 228.9 41.6 30.7 229.2 35.1 39.2 6.2 7.5 286.6 306.6 Assets Total Non-CurrentTotal Assets 299.6 348.9 306.6 368.7 Total Assets 363.2 368.7 $millions CURRENT ASSETS CURRENT ASSETS Cash and cash equivalents Cash and cash equivalents Trade receivables Trade receivables Inventories Inventories Lease receivables Lease receivables Other current assets Other current assets Total Current Assets Total Current Assets 11.4 5.5 22.5 22.2 4.1 4.1 62.164.6 3.9 NON-CURRENT ASSETS NON-CURRENT ASSETS Plant & equipment Plant & equipment Intangibles Intangibles Lease receivables Lease receivables Other non-current assets Other non-current assets Total Non-Current Assets CURRENT LIABILITIES Trade payables Provisions CURRENT LIABILITIES Trade payables Lease liabilities Other current liabilities Provisions Lease liabilities Total Current Liabilities Other current liabilities NON-CURRENT LIABILITIES Total Current Liabilities 27.5 30.7 218.4 229.2 5.6 9.6 3.6 32.7 229.4 39.2 41.6 7.5 6.4 310.1 374.7 10.6 6.8 11.7 6.8 32.4 7.8 58.7 33.9 10.6 4.0 6.8 51.1 31.6 4.3 53.3 9.5 6.7 53.3 31.0 5.3 52.5 NON-CURRENT LIABILITIES Lease liabilities Borrowings 24.0 Other including deferred tax liability Provisions 10.2 Lease liabilities Total non-current liabilities 55.3 Total liabilities Other 10.8 13.3 12.1 56.4 24.5 9.0 12.1 98.1 56.3 149.2 14.6 56.3 24.7 10.7 107.5 57.1 160.7 14.0 Total non-currentNet liabilities Assets 100.2 107.5 199.7 106.5 208.0 Total liabilities 158.9 160.7 159.0 Net Assets 204.3 208.0 215.7 Borrowings Provisions 19.5 31.6 4.3 24.5 14.6 28 1H25 FINANCIAL RESULTS| FEBRUARY 2025 Cash Flow $9.8m UNDERLYING OPERATING CASH INFLOWS, DOWN 19% ON PCP • 61% UNDERLYING EBITDA TO UNDERLYING OPERATING CASHFLOW CONVERSION Underlying operating cash conversion was 61% in 1H25 primarily impacted by the timing of annual payments due in 1H25 and higher inventories at the seasonal peak. We expect an improved Underlying EBITDA to cash conversion ratio in 2H25 • Capital expenditure relates to growth in corporately operated Beefy’s outlets and refurbishments within our corporately operated Gloria Jean’s and Donut King outlets. We are on track to grow Beefy’s from 9 outlets on acquisition to 15 by end of 2H25 • We continue to invest in IT with the roll out of digital kiosks & menu boards. We successfully launched the Beefy’s app in January 2025 which will now be rolled out to other brands • The Group debt facility was unchanged in the half with $15.0m remaining undrawn and without change to the tenure. Our debt agreement expires in April 2026 giving t