Coffee, bakery and pizza franchise player Retail Food Group's expansion overseas and its newly acquired food distribution business have boosted its annual profit.
The owner of Gloria Jean's, Donut King and Crust made a net profit of $61.9 million in the year to June 30, up 17 per cent from the prior year.
But the 14 per cent rise in underlying profit to $75.7 million was below guidance given in June of 15 per cent growth after delays on some international licences.
Retail Food Group has now expanded five of its brands - Gloria Jean's, Donut King, It's A Grind Coffee House, Pizza Capers and Brumby's Bakery - into new markets.
This includes Pizza Capers in India, Donut King in Sweden and Myanmar and Gloria Jeans in 10 new territories, including the UK, Kenya and a Chicago outlet in the United States.
The group now operates in 81 territories, an increase of 17 per cent on a year ago.
Managing director Andre Nell said the group's domestic business, which makes up 43 per cent of earnings, has matured with steady earnings growth while its international network, which makes 13 per cent of earnings, has boosted the company's revenue streams.
"Gloria Jean's is most well known globally and we are starting to get more traction for some of our other brands overseas now," Mr Nell told AAP.
"We are targeting the Middle East region and the US presents significant opportunities, not only for Gloria Jean's, because that's where the brand was established 40 years ago, but also for our other brands."
The group's acquisition of food distribution business Hudson Pacific Corporation just over a year ago has led to it creating a commercial division which has contributed $11.8 million in underlying earnings.
Underlying earnings in RFG's franchise division improved by 1.5 per cent on the previous year, supported by the performance of coffee retail businesses.
Donut King was the group's best performing franchise business, with its crucial same store sales up 4.7 per cent, while Michel's Patisserie's same store sales declined two per cent, partly due to changes to its supply chain.
The group's coffee supply division's earnings was steady at $42.7 million
Shares in RFG closed four cents, or 0.8 per cent, higher at $4.84.
RFG PROFIT UP ON OVERSEAS EXPANSION:
* Full year net profit up 17pct to $61.9m
* Revenue up 27pct to $349.3m
* Final dividend up 0.5 cents to 15 cents, fully franked
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