Collins Foods Limited · ASX:CKF
Collins Foods — HY16 Earnings Presentation
17 slides from Collins Foods's earnings presentation, Dec 2, 2015
Slide 1: 2016 Half Year Results
For personal use only COLLINS FOODS LIMITED 2016 HALF YEAR RESULTS 2 December 2015
Slide 2: HY16 saw growth across all key financial metrics
HY16 saw growth across all key financial metrics For personal use only HY15 HY15 HY15 HY16 Change vs Statutory Significant Underlying Statutory HY15 • Revenue up 5.1% to $269.7m $m items [1] Underlying • EBITDA up 19.8% to $35.3m Revenue 256.7 256.7 269.7 5.1% EBITDA 29.4 29.4 35.3 19.8% • NPAT
Slide 3: HY16 operational highlights
HY16 operational highlights For personal use only • Strong top line growth of 8.7%, • Sizzler Australia, now managed as • Opened a new Stand in November with same store sales (SSS) of non-core, generating positive at Pacific Fair incorporating the 5.2% EBITDA new brand elements • Opened 3 new restau
Slide 4: Strong KFC performance during first half
For personal use only Strong KFC performance during first half
Slide 5: Strong KFC performance during first half
Strong KFC performance during first half For personal use only HY15 HY15 HY15 HY16 Change vs • Revenue up 8.7% with SSS up 5.2% Statutory Significant Underlying Statutory HY15 $m items [1] Underlying • Good momentum across the business but tougher Restaurants comp rolls to come in the second half -
Slide 6: KFC continues to deliver great products that enhance the brand
KFC continues to deliver great products that enhance the brand and which our customers love For personal use only Core product innovation Great value Family and boxed meals Original Tenders; Zinger Taco’s; Fold Its - $1 chips; 24 nuggets for $10, 9 for $9.95 These products have a broad appeal as are
Slide 7: Restaurant build and remodel program continues to drive growth
Restaurant build and remodel program continues to drive growth For personal use only Baldivis (WA) • HY16 Capex of circa $12m for KFC network development 3 new openings 11 major remodels 5 minor remodels Butler (WA) • Core maintenance and systems capital circa $1m • Further 4-5 new stores and
Slide 8: Sizzler Australia now managed as non-core
For personal use only Sizzler Australia now managed as non-core
Slide 9: Sizzler Australia now managed as non-core
Sizzler Australia now managed as non-core For personal use only HY15 HY15 HY15 HY16 Change vs • Overall revenue down 13.9% Statutory Significant Underlying Statutory HY15 items [1] Underlying • 3 restaurants closed in first half $m Restaurants • Focused management of costs has seen margins hold desp
Slide 10: 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 HY16 vs HY15 up 20.9% • 1 new restaurant opened in Thailand with further new restaurant opening in Tokyo in December • 6 new restaurants planned t
Slide 11: Financial overview
For personal use only Financial overview
Slide 12: Positive cashflow enabling debt to be paid down
Positive cashflow enabling debt to be paid down For personal use only HY15 HY16 • Net cash flow positive $5.4m $m Net operating cash flows before interest and tax 28.2 34.7 • Net operating cash flow before interest and tax increased by $6.5m driven by growth in sales and Net interest paid (4.2) (3.9
Slide 13: Lower net debt and lower net leverage ratio
Lower net debt and lower net leverage ratio For personal use only Net Debt / Net Leverage Ratio • Net debt down $5.4m since year end to $117.4m • Increased covenant headroom with net leverage ratio down to 1.62 Page 12
Slide 14: Balance sheet
Balance sheet For personal use only 03-May-15 18-Oct-15 • Cash balance up $5.4m to $47.6m $m Cash and equivalents 42.2 47.6 • Property, Plant & Equipment (PP&E) up $3.9m due to new restaurants and remodels partially Total current assets 53.1 56.3 offset by restaurant depreciation Property, plant and
Slide 15: Priorities for remainder of FY16
Priorities for remainder of FY16 For personal use only • Growing the KFC business through: Existing store sales growth Building 4-5 new stores and remodelling a further 7 stores Exploring acquisition opportunities • Disciplined focus on operational improvement and KFC margins • Continuing to r
Slide 16: Questions
For personal use only Questions
Slide 17: 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