Allied Brands expects profits to surge in coming year
Food franchisor and retailer Allied Brands has informed shareholders that its net profit will jump more than 20 per cent this year as the international expansion of its Cookie Man brand gathers pace.
Speaking at yesterday’s AGM, Allied Brands CEO Shane Radbone forecast the company would record net profit before tax of between $6.6 million and $7.2 million for 2009/10. The forecast is 20 per cent to 33 per cent higher than the company’s 2008/09 result.
Allied Brands, an ASX-listed franchisor who is behind names like Baskin Robbins in Australia, expects the rising profit would stem from the growth of the Villa and Hut
network, the growth in sales of Baskin Robbins, and international interest in Cookie Man.
Baskin Robbins store-on-stores sales increased 12.91 per cent in the first quarter of 2009/10.
Allied Brands had signed heads of agreements for two international country licenses for Cookie Man and was in advanced stages of negotiation with a third country licence, Mr Radbone added.
“Cookie Man already has 55 stores in India, 15 in China, 13 in Greece and one in Singapore,” he said. “It is one of the most successful Australian Franchise businesses to export its brand outside of Australia and we expect that international growth to continue in the years to come.”
The reality of this annual meeting is very different than that portrayed in Allied Brands “spin” press release. Details of the angry shareholders was published in the Gold Coast newspapers, as well as on the investor blog.
This company has yet to explain where all the cash raised from doubling the number of shares has gone.