FAST growing franchisor and retailer Allied Brands (ABQ) says its net profit will jump more than 20 per cent this year as the international expansion of its Cookie Man brand gathers pace and with the appointment of three sporting celebrities as brand ambassadors.
Speaking at today’s annual general meeting, Allied Brands chief executive officer 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 is the company behind the Australia franchise chains of Baskin Robbins, Cookie Man, Kenny’s Cardiology, Villa and Hut, Awesome Water and Awesome Entertainment.
Mr Radbone said 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.
He said 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 said the company would announce the specific countries once the licence agreements had been executed. “Cookie Man already has 55 stores in India, 15 in China, 13 in Greece and one in Singapore,’’ said Mr Radbone. “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.”
Allied Brands has also appointed three sporting personalities to become brand ambassadors. International basketball star Shane Heal will promote Baskin and Robbins while champion lifesavers Dean Mercer and Reen Corbett will become brand ambassadors for Awesome Water. Mercer and Corbett will appear as the faces for the Awesome Group in all of its marketing material. Sales for the Awesome Group were up 23 per cent for the first quarter.
Mr Radbone said the company’s newly created Franchise Services division was performing above expectations and looked set to contribute $500,000 to the company’s bottom line. “We are the only major player offering a high quality level of service and expertise in this sector at the moment. “We see Franchise Services as a future growth division targeting large private retail businesses that need franchise expertise.
www.alliedbrands.com.au
