The embattled owner of the Donut King and Gloria Jeans brands has again lowered its profit guidance, only three weeks after warning investors of a weaker than expected first half.

Retail Food Group said on Tuesday that it would no longer achieve a profit of $22 million for the six months to June 30.

RFG's shares dived as much as 10 per cent on the news, before recovering to close down 6 per cent at $2.32.

The company, which also owns the Brumby's Bakeries, Crust Pizza, Pizza Capers and Michel's Patisserie chains, did not say what it now expected its profit to be other than "less than the $22 million" advised on December 19.