Owner of franchises Gloria Jeans, Brumby’s, Donut King, Michel’s Patisserie, and Crust Pizza — to name a few — Retail Food Group [ASX:RFG] shares were boosted by 6% earlier on Thursday upon releasing a double announcement on trade and changes to management.
Retail Food said it is appointing Matthew Marshall as Chief Executive Officer from the beginning of July, with an extended term also arranged for Executive Chairman Peter George by another two years.
Aside from the leadership transitions and extensions, the group also posted its FY23 underlying EBITDA guidance, which was $26–29 million.
With its 6% share price boost this morning, RFG shares were still at the bargain price of 6 cents apiece, with the franchiser stock having slumped 34% so far in 2023:
Source: tradingview.com
Retail Food Group appoints Matthew Marshall as CEO
Retail Food Group has announced that as part of its longer-term succession planning strategy, Matthew Marshall has been appointed Chief Executive Officer from 1 July this year.
Additionally, Peter George has been nominated as continued Executive Chairman, taking this role for another two years.
Mr Marshall will be expected to drive growth opportunities for the group and provide sustainable value creation for the company’s stakeholders.
The new CEO will be coming from his current position as Head of Retail, where he has been responsible for driving operational outcomes in what was described as difficult retail environments, which included the COVID pandemic.
Retail Food said that Mr George will be tasked with focusing on specific strategic growth projects as well as mentoring and supporting the new CEO in order to ensure a successful and orderly/efficient succession of leadership.
Mr George said that it was the right time to begin a new succession process. He commented:
‘The heavy lifting in terms of the turnaround has been accomplished. We have a stable earnings base and a stronger balance sheet which, together with the resolution of legacy regulatory issues in December 2022, provides a firm platform to pursue growth opportunities.
‘Supported by a strong and experienced management team bolstered by the recent appointment of new CFO Rob Shore, the Board is in no doubt that Matt possesses the skills and energy necessary to assume broader responsibility for our growth strategy whilst engaging with key stakeholders including Franchise Partners, employees and the financial and investor communities.’
RFG said trading conditions have been easing in recent weeks after what has been a very challenging and ever-changing retail environment.
Year-to-date, the group’s net sales grew by 8.5% to $478 million in FY23 versus the previous corresponding period, and in the second half net sales growth moderated by 2.2% on macro factors.
The group said there is no change to underlying EBITDA guidance, which is to be in the range of $26–29 million.
Retail Foods’ plans to provide further details on the outlook and strategy will be presented alongside FY23 results in August 2023.
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