Retail Food Group Ltd (ASX: RFG)

Responded to Enquiries and Maintained FY18 Guidance: Retail Food Group’s stock moved up over 0.9% in early trade on December 07, 2017 before ending flat, as the group provided an update concerning the business wide review that has been undertaken to better assure a sustainable long-term future for its business, those of its franchisees, and other stakeholders given the challenging retail environment (particularly for shopping centre tenants). Based on the enquiries received from investors on the scope of the review and on domestic franchise operations, the group has provided its response via this update. RFG particularly clarified that the review is a 24-month project and was commissioned by RFG’s new Managing Director and Executive team in late FY17 with support from Deloitte. RFG has undertaken a number of proactive measures to inform, support and educate franchisees to ensure their awareness on obligations as employers. The group has also completed an extensive franchisee engagement process across its domestic brand network for improving the franchisee outcomes. Overall, RFG maintained an optimistic outlook and its FY18 guidance of circa 6% underlying NPAT growth.
 

Yowie Group Ltd (ASX: YOW)

Charging high on U.S. Expansion Efforts: Yowie Group’s stock charged up with a 14.7% stock price rise on December 07, 2017 as the group announced about pushing into the U.S. retail market through an expansion via several key retailers in the United States to sell the iconic confectionary, and moving into 8000 convenience stores. The expansion has been slated to generate higher sales in the opening half of calendar year 2018 for the group. Further, the product will be sold in a number of new retailers across the grocery (through Albertsons, Wakefern etc.), mass (through Target), and specialty consumer channels (such as Five Below and Michaels) in the U.S. The group has indicated for a significant expansion into Target, to 1250 stores nationally. In October, the group announced about its product to be made available on shelves in select Canadian retail outlets, furthering the branding company’s expansion into markets outside of the U.S. The group will be releasing the Q2 fiscal report in January 2018. All in all, a good shot from the group considering a 51% drop in stock price in the last six months (as at December 06, 2017).

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