Collins Foods (CKF) H1 2026 earnings summary

Executive summary

• Achieved record HY26 revenue of $750.3 million, up 6.6% year-over-year, with strong profit and margin improvements driven by growth in Australia and Europe despite cost of living pressures.

• Underlying EBITDA rose 11.0% to $113.9 million; underlying NPAT increased 29.5% to $30.8 million; statutory NPAT up 12.7% to $27.2 million.

• Enhanced operational excellence, productivity, and cash flow, with net leverage ratio reduced to 0.89 and net debt down to $138.9 million.

• Continued investment in network expansion, technology, and sustainability, supporting future growth and operational execution.

• Upgraded full-year outlook, targeting mid to high teens percentage growth in underlying NPAT for FY26.

Financial highlights

• Revenue reached $750.3 million, up 6.6% year-over-year, a company record.

• Underlying EBITDA up 11.0% to $113.9 million; underlying NPAT up 29.5% to $30.8 million.

• Statutory NPAT was $27.2 million, up 12.7% year-over-year.

• Return on equity increased 190 bps to 14.1%; underlying EPS up to 26.1 cps.

• Fully franked interim dividend of 13.0 cps declared, up from prior period.

Outlook and guidance

• Upgraded FY26 guidance: targeting mid to high teens percentage growth in underlying NPAT post-IFRS 16.

• Early second-half trading shows continued sales growth in all markets; KFC Australia SSS up 3.6% in first seven weeks.

• Expecting margin tailwinds from easing poultry prices in Europe and VAT reduction in Germany, but labor and commodity cost inflation remain headwinds.

• Continued focus on operational execution, network expansion, and brand modernisation.