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 ($51.1 million) due to higher depreciation and lower EBIT.

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

• Strong cash flow and reduced net debt support continued investment and a fully franked final dividend of AUD 0.15 per share (total FY25: AUD 0.26).

• Strategic exit from Taco Bell and focus on KFC network expansion, especially in Germany.

Financial highlights

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

• Underlying EBITDA from continuing operations 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 AUD 40.8 million in impairments and wage provisions.

• EPS from continuing operations at AUD 0.434 (43.4 cps), down from AUD 0.51 (51.0 cps) year-over-year.

• Net operating cash flows increased to AUD 181.4 million; net debt reduced by AUD 27.6 million to AUD 137.9 million.

Outlook and guidance

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

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

• Netherlands and Germany sales up 2.6% and 2.4% respectively in early FY26.

• Targeting 40-70 new KFC restaurants in Germany over five years; 7-10 new restaurants and 30 remodels in Australia.

• Continued favorable cost environment in Australia and productivity improvements expected; cost pressures in Europe, especially poultry.