Collins Foods Limited · ASX:CKF
Collins Foods — H1 FY2017 Earnings Presentation
19 slides from Collins Foods's earnings presentation, Nov 30, 2016
Slide 1: FY17 Half-Year Results
For personal use only COLLINS FOODS LIMITED FY17 HALF-YEAR RESULTS 30 November 2016
Slide 2: HY17 saw continued growth in key financial metrics
HY17 saw continued growth in key financial metrics For personal use only HY16 HY17 FY17 FY17 Change vs • Revenue up 4.7% to $282.5m Statutory Statutory Significant Underlying HY16 Items Statutory • Underlying EBITDA up 9.4% to $38.6m $m [1] Revenue 269.7 282.5 282.5 4.7% • Underlying NPAT up 17.2%
Slide 3: HY17 operational snapshot
HY17 operational snapshot For personal use only • Top line growth of 6.4% - same • Sizzler Australia sales better • Business now fully under Collins store sales (SSS) of (0.6%) with than expected with good Foods leadership Q2 SSS returning to positive margin controls delivering growth • New menu and
Slide 4: KFC continues to grow
For personal use only KFC continues to grow Page 3
Slide 5: KFC continues to grow
KFC continues to grow For personal use only HY16 HY17 HY17 HY17 Change vs • Revenue up 6.4% to $249.6m Statutory Statutory Significant Underlying HY16 items [1] Statutory the acquisition of 13 stores in the Restaurants NSW/Victoria market contributed - Half-year end 174 190 190 16 revenue of $7.
Slide 6: Innovation, value and new product offerings keep driving growth
Innovation, value and new product offerings keep driving growth For personal use only Great value ‘New products continue to Value offers such as 24 Nuggets for $10 and $2 Sliders continue engage customers whilst our to drive transaction growth and value layer continues to deliver deliver good value
Slide 7: Continued investment driving further growth
Continued investment driving further growth For personal use only Greenslopes (QLD) Caboolture (QLD) • HY17 capex of circa $7.7m for KFC network development 1 new opening 13 major remodels 5 minor remodels • HY17 core maintenance and systems capital circa Melville (WA) $2.1m • Balance of year
Slide 8: Expansion into Germany
Expansion into Germany For personal use only Competitor – Restaurant #’s* • World’s 4th largest economy 2,000 • 82.5m consumers 1,500 1,000 500 • €71b out of home food market with the QSR segment worth 0 approximately €23b* McD BK SUB KFC • Currently there are approximately 1,500 McDonald’s* and ove
Slide 9: Acquisition of KFC restaurants in Germany
Acquisition of 11 KFC restaurants in Germany For personal use only • Acquisition of 11 KFC restaurants located in Germany – 6 in Dusseldorf region; 5 in Stuttgart region – for €12.7m • On a trailing basis sales were €22.5m • Immediately EPS accretive (pre-synergies) • Fragmented franchise community
Slide 10: Sizzler delivered improved EBITDA results
For personal use only Sizzler delivered improved EBITDA results Page 9
Slide 11: Sizzler delivered improved EBITDA results
Sizzler delivered improved EBITDA results For personal use only HY16 HY17 Change vs • Overall revenue down 11.1%, with comp sales in Statutory Statutory HY16 Australia of (0.6%) Statutory • Store count down 2 versus prior year due to Restaurants closures - Period end [1] 23 21 2 • Ongoing focus on
Slide 12: Sizzler Asia continues to grow
Sizzler Asia continues to grow For personal use only • Sizzler Asia continues to grow through increased royalty revenue and store count • Royalty revenue up 15.0% • 2 new restaurants opened in Thailand and 2 new restaurants opened in China during HY17 • 2 further new restaurant openings are planned
Slide 13: Financial overview
For personal use only Financial overview Page 12
Slide 14: Net cash flow pre acquisition costs remains positive
Net cash flow pre acquisition costs remains positive For personal use only $m HY16 HY17 • Net operating cash flow increased by $2.5m Net operating cash flows before interest and tax 34.7 38.3 • Income tax paid increased $1.2m due to an increase in revenue and the tax instalment Net interest paid (3.
Slide 15: Net leverage ratio is 1.54 after acquisition of new KFC restaurants
Net leverage ratio is 1.54 after acquisition of 13 new KFC restaurants in NSW/Victoria border region For personal use only • Net leverage ratio remains at 1.54 from FY16 Net Debt / Net Leverage Ratio $135 2.75 • Net leverage ratio covenant $130 2.50 maximum of 2.75 $124.6m Net Leverage Ratio $125 $1
Slide 16: Balance sheet
Balance sheet For personal use only 1 May 16 October • Decrease in cash of $12.1m due to $m 2016 2016 acquisition of 13 KFC restaurants Cash and equivalents 52.5 40.4 • Property, plant and equipment up $5.1m Total current assets 65.9 49.5 mainly due to new restaurant acquisitions and remodels offset
Slide 17: Priorities for the remainder of FY17
Priorities for the remainder of FY17 For personal use only • Growing the KFC Australian business through: existing store sales growth building 5 – 6 new stores continuing remodel program with 7 major and 5 minor remodels exploring further local acquisition opportunities that meet Collins Foo
Slide 18: Questions
For personal use only Page 17 Questions
Slide 19: Disclaimer
Disclaimer For personal use only This presentation contains forward looking statements which may be subject to significant uncertainties beyond CKF’s control. No representation is made as to the accuracy or reliability of forward looking statements or the assumptions on which they are based. Circums