Collins Foods Limited reported its half-year results for the period ended 13 October 2024, highlighting resilient revenue growth despite challenges from a tough consumer environment. The company experienced positive growth in revenue, but same-store sales (SSS) were impacted by economic pressures, leading to a decline in profit margins.
Group Financial Highlights
- Revenue: Up 1.2% to $703.5 million (HY24: $695.2 million)
- Underlying EBITDA: Down 6.6% to $102.7 million (HY24: $109.9 million)
- Underlying NPAT: Down 23.8% to $23.7 million (HY24: $31.2 million)
- Statutory NPAT: $24.1 million (HY24: $50.5 million)
- Net Debt: Reduced to $158.9 million (HY24: $173.0 million)
- Interim Dividend: Declared 11.0 cps (HY24: 12.5 cps)
Segment Performance
KFC Australia
- Revenue: Increased 2.7% to $536.8 million
- SSS Growth: -0.1% (HY24: +6.6%)
- Underlying EBITDA: Down 3.1% to $102.2 million
- New Restaurants: 6 new locations added, bringing the total to 285
- Digital Revenue: 33.7% of total sales, up 5.6 percentage points
- Brand Marketing: Strong engagement through campaigns like “Christmas in July” and sponsorships
KFC Europe
- Revenue: Decreased 3.4% to $142.1 million
- SSS Growth: -3.8% (HY24: +8.8%)
- Underlying EBITDA: Down 15.2% to $17.1 million
- Key Markets: Germany SSS -5.5%, Netherlands -3.3%
- Digital Sales: More than 60% of sales in Germany and Netherlands via digital channels
Taco Bell
- Revenue: Down 2.0% to $24.6 million
- SSS Growth: -0.3% (HY24: +7.9%)
- Underlying EBITDA: Loss of $0.9 million (HY24: loss of $0.1 million)
- Marketing Focus: $5 and $10 value deals and brand collaborations with Red Bull and Doritos
Cash Flow and Dividends
- Operating Cash Flow: $75.3 million (down from the previous year)
- Capex: $34.1 million, reflecting investment in network and technology
- Dividends: Fully franked interim dividend of 11.0 cps, payable on 6 January 2025
Outlook
- The company expects continued pressure in the consumer environment, particularly in Europe and the Netherlands, but KFC Australia showed signs of gradual improvement.
- FY25 Forecast: Underlying EBITDA margins expected to range between 14.2% and 14.7%, down from 15.4% in FY24.
- Expansion: The company plans to add 7 new restaurants during the remainder of FY25.
CEO Statement
Managing Director and CEO, Xavier Simonet, expressed optimism about the future, citing the company’s strong fundamentals, world-class brands, and solid financial position. He emphasized the importance of operational excellence, profitable growth, and disciplined expansion.
This release underscores Collins Foods’ resilience amid challenging conditions, positioning the company to take advantage of future consumer recovery as market conditions stabilize.
