Retail Food Group (RFG) has boosted its profits for the sixth successive year.

The company, which is responsible for brands like Donut King, Michel’s Patisserie and Brumby’s Bakeries, announced a 5.7 per cent increase in core net profit after tax (NPAT) to $27.9 million.

RFG CEO Tony Alford said despite the natural disasters that severely challenged the retail environment, the franchise system network sales increased $10.5 million over the 2010 financial year to $851.1 million while 40 new outlets were established.

“The Company’s performance is testament to the effectiveness of its business model and franchise systems as is amply demonstrated by its ability to drive enduring results notwithstanding the severely challenged retail environment which has prevailed throughout 2011 financial year,” he said.

According to RFG, the success seen in its NPAT was underpinned by increasingly diversified revenue sources, and enhanced franchise system revenues, derived from both acquisitive and organic outlet growth.

Despite this, Alford reiterates “RFG’s core NPAT growth guidance for 2012 financial year remains conservative at circa 10 per cent given the economic outlook which we envisage will prevail over the next 12 months”.