RFG felt the impact of the global response to the COVID-19 pandemic through its International business which lost on significant trade with China during its lockdown. In our view, the income diversity of RFG’s regional target market could support sustained revenue growth in 2H20. We believe RFG’s brands are in a good position to benefit from restrictions on restaurants and dining out, which could lead to more in-home cooking. We show how low interest rates and RFG’s proposed long-term debt repayment schedule could lead to a significant improvement in profitability and cash generation.
