Collins Foods Limited · ASX:CKF
Collins Foods — HY20 Earnings Presentation
28 slides from Collins Foods's earnings presentation, Nov 27, 2019
Slide 1: HY20 Results
COLLINS For personal use only FOODS LIMITED HY20 RESULTS 27 NOVEMBER 2019 ACN 151 420 781
Slide 2: Strong earnings growth for Collins Foods group
Strong earnings growth for Collins Foods group For personal use only • Revenue up 9.2% to $448.8m HY19 HY20 HY20 HY20 HY20 (1) Change Underlying Statutory Non trading (2) Underlying Statutory • Underlying EBITDA (pre AASB 16) up 7.4% to ($m) (Pre AASB 16) (Pre AASB 16) items (Pre AASB 16) (Post AASB
Slide 3: HY20 results overview
HY20 results overview For personal use only Australia Europe Australia Australia • Top line revenue growth of 8.9% • Same Store Sales (SSS) growth of • 5th restaurant opened during first • Sizzler Australia Same Store Sales 0.1% half of FY20, with 2 additional (SSS) growth of 4.0% • Same Store Sales
Slide 4: KFC Australia
For personal use only Page 3 KFC Australia
Slide 5: Strong same store sales growth delivered margin uplift across KFC Australia
Strong same store sales growth delivered margin uplift across KFC Australia For personal use only HY19 HY20 HY20 HY20 HY20 • Revenue up 8.9% to $359.5m Underlying (1) Statutory Non trading Underlying Change Statutory (2) • Overall SSS growth of 4.9% with all States ($m) (Pre AASB 16) (Pre AASB 16) i
Slide 6: Value continues to drive strong earnings for KFC Australia
Value continues to drive strong earnings for KFC Australia For personal use only Page 5
Slide 7: Continued focus on delivery and digital driving KFC Australia’s strong performance
Continued focus on delivery and digital driving KFC Australia’s strong performance For personal use only Delivery / Digital Operations • ~100 restaurants currently support delivery, • Speed of service 10% faster than prior year with 53 of these covered by multiple during peak times, improving custom
Slide 8: KFC Australia restaurant build and remodel update
KFC Australia restaurant build and remodel update For personal use only • HY20 capex of circa $9.0 m for KFC Australia network development: - 2 new restaurant openings in the half year - 4 major remodels and 25 minor remodels completed • HY20 maintenance and other capital circa $5.0m • Digital menu
Slide 9: KFC Europe
For personal use only Page 8 KFC Europe
Slide 10: National brand refresh and value delivering sales improvements in Germany
National brand refresh and value delivering sales improvements in Germany For personal use only • Overall Europe SSS growth of 0.1%, driven by 5.7% SSS growth in HY19 HY20 HY20 Germany whilst dampened by weaker SSS decline of (2.9)% in the Statutory Statutory Change Statutory ($m) (Pre AASB 16) (Pre
Slide 11: Brand initiatives and focus on value driving sales in Germany
Brand initiatives and focus on value driving sales in Germany For personal use only Sales driving activities Operations and restaurant development • National brand refresh launch in June • Focus remains on delivering consistently provided good momentum in the first half high operational standards an
Slide 12: New brand and marketing leadership expected to drive transactions growth in the Netherlands
New brand and marketing leadership expected to drive transactions growth in the Netherlands For personal use only Sales driving activities Operations and restaurant development • KFC Netherlands have strengthened their • Focus remains on delivering consistently marketing capability through a newly h
Slide 13: KFC Europe restaurant build and remodel update
KFC Europe restaurant build and remodel update For personal use only • HY20 capex of circa $6.0m for KFC Europe network development: - 3 new restaurants opened in the Netherlands Dordrecht, NL - 1 new restaurant opened in Germany and 1 restaurant closure • Germany new restaurant build program refocu
Slide 14: Taco Bell
For personal use only Page 13 Taco Bell
Slide 15: Successfully opened additional Taco Bell restaurants in Queensland
Successfully opened additional Taco Bell restaurants in Queensland For personal use only • Opened 5th restaurant in Southport, Qld in August 2019, 6th and 7th restaurants opened in Logan Central in October 2019 and Currajong (Townsville) in November 2019 • Expansion into Victoria announced with 2 re
Slide 16: Taco Bell continues to launch exciting new products and experiences
Taco Bell continues to launch exciting new products and experiences For personal use only International Taco Day Page 15
Slide 17: Sizzler
For personal use only Page 16 Sizzler
Slide 18: Sizzler growth led by Sizzler Asia
Sizzler growth led by Sizzler Asia For personal use only HY19 HY20 HY20 • Solid same store sales growth in Australia of 4.0% Statutory Statutory Change Statutory ($m) (Pre AASB 16) (Pre AASB 16) (Post AASB 16) • Overall revenue down 8.9% driven by fewer restaurants compared to prior year Restaurants
Slide 19: Sizzler Asia delivers good earnings growth
Sizzler Asia delivers good earnings growth For personal use only JAPAN 10 CHINA 10 • Sizzler Asia continues to grow in existing restaurant sales THAILAND 56 • Total of 76 restaurants in Asia as at HY20 (1 closure in China) • Royalty revenue from Sizzler Asia up 17.9% compared with the prior full yea
Slide 20: Financial overview
For personal use only Financial overview Page 19
Slide 21: Healthy operating cash flow
Healthy operating cash flow For personal use only HY19 HY20 HY20 • Net operating cash flow (pre AASB 16) of $33.7m down $2.1m on prior half year due to working $m (Pre AASB 16) (Pre AASB 16) (Post AASB 16) capital timing Net operating cash flows before interest and tax 49.9 49.0 72.3 Net interest pa
Slide 22: Net leverage ratio reduced due to healthy operating cash flows
Net leverage ratio reduced due to healthy operating cash flows For personal use only • Net leverage ratio (pre AASB 16) at 1.84 Net Debt $m / Net Leverage Ratio* • Net leverage ratio (post AASB 16) at 1.55 $227.2 $217.3 $212.5 • Net leverage ratio (pre AASB 16) covenant maximum of 2.75 • Net debt of
Slide 23: Balance sheet
Balance sheet For personal use only 28-Apr-19 13-Oct-19 13-Oct-19 • Cash balance (pre AASB 16) down $2.6m to (Post AASB 16) $77.2m $m (Pre AASB 16) (Pre AASB 16) Cash and equivalents 79.8 77.2 77.2 • Property, plant and equipment up $10.4m to Total current assets 91.7 93.0 90.4 $187.1m mainly due to
Slide 24: Key priorities for second half of FY20
Key priorities for second half of FY20 For personal use only KFC Australia KFC Europe Taco Bell Australia Continue to strengthen and streamline Sales growth through “always on”, everyday, Continue to establish and build the Taco Bell operational systems and disruptive value brand in Australia
Slide 25: Appendix
For personal use only Page 24 Appendix
Slide 26: HY20 non trading items summary
HY20 non trading items summary For personal use only EBITDA EBIT NPAT ($m) Unamortised borrowing costs expensed as a result of the refinancing 0.0 0.0 0.6 Make good expenses associated with equipment from a product exit 0.4 0.4 0.3 Insurance money relating to material damages – KFC Australia (0.7) (
Slide 27: Questions
For personal use only Page 26 Questions
Slide 28: 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