Collins Foods (CKF) H2 2025 earnings summary

Executive summary

• Record revenue of AUD 1.519 billion (or $1,519.5 million), up 2.1% year-over-year, driven by growth in Australia and offset by softness in Europe.

• Underlying EBITDA flat at AUD 228 million ($228.5 million); underlying NPAT down 14.8% to AUD 51.1 million due to higher depreciation and lower EBIT.

• Statutory NPAT dropped 88.5% to AUD 8.8 million, impacted by AUD 40.8 million in impairments and wage underpayment provisions.

• Strong second half performance with improved operational focus, cost deflation, and easing consumer pressures.

• Board declared a fully franked final dividend of AUD 0.15 per share, total FY25 dividend AUD 0.26.

Financial highlights

• Revenue from continuing operations up 2.1% to AUD 1.519 billion ($1,519.5 million).

• Underlying EBITDA flat at AUD 228 million ($228.5 million); underlying NPAT down 14.8% to AUD 51.1 million.

• Statutory NPAT down 88.5% to AUD 8.8 million due to impairments and wage provisions.

• Net operating cash flows increased to AUD 181.4 million; cash conversion at 120%.

• Net debt reduced by AUD 27.6 million to AUD 137.9 million; net leverage ratio at 0.93.

Outlook and guidance

• FY26 group underlying NPAT growth targeted in the low to mid-teens percentage.

• KFC Australia total sales up 4.9% in first eight weeks of FY26; same-store sales up 1.6%.

• Netherlands total sales up 2.6%, with focus on improving profitability.

• Germany total sales up 2.4%; targeting 40-70 new restaurants over five years.

• Favorable cost environment and productivity improvements expected to support margin growth.