Benefits of change to take time.
The challenging trading period expected in the second half has materialised and as a result, Godfreys has provided an updated outlook for the 2017 financial year.
“Based on current expectations, EBITDA for FY2017 is now anticipated to be around the lower end of its underlying $14 million to $15 million EBITDA guidance range. Whilst the updated guidance reflects a decline in same-store sales in the second half, these have stabilised and are showing signs of improvement,” a statement to the ASX reads.
“The conversion of company-owned stores to franchise stores is progressing well with the rollout plan tracking ahead of target; this is expected to contribute to higher franchising license fees in this financial year,” the statement continued.
Godfreys managing director, John Hardy said, “We are focused on improving all aspects of the business. This includes adjusting our product mix and improving sales operations, marketing inventory management and store composition. We expect these changes will improve our competitive position although the benefits will take time to be realised.”