Collins Foods (CKF) H2 2024 earnings summary

Executive summary

• FY24 delivered record 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, and underlying NOPAT increased 15.6% to AUD 60 million.

• Statutory NOPAT was AUD 76.7 million, reflecting a gain from the Sizzler Asia sale 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.

• Full-year dividend increased to AUD 0.28 per share, up from AUD 0.27.

Financial highlights

• Group revenue reached AUD 1.5 billion, up 10.4% year-over-year.

• Underlying EBIT increased 15% to AUD 124.1 million.

• Underlying EPS rose 15.3% to AUD 0.51 per share; statutory EPS 0.653 per share 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.

• Cash balance increased to AUD 84 million; net assets at AUD 426.4 million.

Outlook and guidance

• FY25 started with sales volatility due to continued weak consumer sentiment in Australia and Europe.

• Cost of living pressures and elevated labor costs expected to persist, impacting sales growth and margins.

• 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 2.3% in Netherlands and 2.8% in Germany.

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