Collins Foods (CKF) H2 2024 earnings summary

Executive summary

• Record FY24 revenue of AUD 1,488.9 million, up 10.4% year-over-year, with growth across all business units.

• Underlying EBITDA rose 12% to AUD 229.8 million; underlying NOPAT/NPAT increased 15.6% to AUD 60 million.

• Statutory NPAT was AUD 76.7 million, reflecting improved performance, Sizzler Asia sale gain, and prior year Taco Bell impairment.

• Net debt reduced by AUD 46.7 million to AUD 165.5 million, supported by strong cash generation and asset sales.

• Fully franked FY24 dividend increased to 28.0 cps, up from 27.0 cps in FY23.

Financial highlights

• Revenue from continuing operations increased 10.4% to AUD 1,488.9 million.

• Underlying EBIT up 15% to AUD 124.1 million.

• Underlying EPS rose 15.3% to 0.51 per share; statutory EPS 65.3 cps including Sizzler Asia gain.

• Net operating cash flow increased by AUD 30 million to AUD 176.4 million; net leverage ratio improved to 1.07.

• Net assets increased to AUD 426.4 million; cash balance at AUD 84 million.

Outlook and guidance

• FY25 started with sales volatility and margin pressure due to weak consumer sentiment and cost-of-living challenges in Australia and Europe.

• KFC Australia total sales up 1.5% in first 7 weeks of FY25; same-store sales down 0.8%.

• KFC Europe sales flat in early FY25; same-store sales down in Netherlands and Germany.

• Taco Bell FY25 first 7 weeks SSS +0.6%; focus on digital marketing, product innovation, and brand investment.

• Continued network expansion, M&A opportunities, and focus on operational efficiencies.