Collins Foods Limited · ASX:CKF
Collins Foods — RBS Morgans Annual Queensland Conference 2013
24 slides from Collins Foods's conference presentation, Oct 9, 2013
Slide 1: Collins Foods Limited – RBS Morgans Annual Queensland Conference
For personal use only 9 October 2013 COLLINS FOODS LIMITED – RBS MORGANS ANNUAL QUEENSLAND CONFERENCE Collins Foods Limited (ASX:CKF) refers to the RBS Morgans Annual Queensland Conference. The Company will be a participant at this Conference and attached, is a copy of the presentation to be present
Slide 2: Collins Foods Limited Annual Queensland Conference
For personal use only COLLINS FOODS LIMITED Annual Queensland Conference 9 October 2013 COLLINS FOODS LIMITED 0
Slide 3: Today's agenda
Today’s agenda For personal use only SECTION 1 – Collins Foods Limited SECTION 2 – KFC returns to growth SECTION 3 – Sizzler in transition SECTION 4 - Financial information COLLINS FOODS LIMITED 1
Slide 4: Kevin Perkins, Managing Director & CEO
For personal use only COLLINS FOODS LIMITED Kevin Perkins, Managing Director & CEO COLLINS FOODS LIMITED 2
Slide 5: Our history and background
Our history and background For personal use only COLLINS FOODS LIMITED 3
Slide 6: KFC returns to growth
For personal use only KFC returns to growth COLLINS FOODS LIMITED 4
Slide 7: QSR Industry at a glance
QSR Industry at a glance For personal use only Key statistics snapshot • Revenue $12.6bn made up of approximately 13,000 businesses Market share – major players Competitive Foods Australia Pty Ltd (Industry brand names - Hungry Jack’s) Yum! Restaurants Australia Pty Limited (Industry brand names - K
Slide 8: KFC top-line returns to growth
KFC top-line returns to growth For personal use only $million FY13 FY12* Change • Revenue up 5.8% to $318.2m Restaurants: – SSSG of 4.2% (FY12: down 1.8%) – average 120.9 119.5 1.4 – period end 122.0 121.0 1.0 – free-standing and service centre locations Revenue 318.2 300.8 5.8% driving growth
Slide 9: KFC promotions driving sales
KFC promotions driving sales… For personal use only • WOW dinners – 9 for $9.95 value offer, keeps showing increase in demand versus prior year • Successful Spring Campaign with a new variant that mixes 2 ideas loved by Australians, KFC Zinger flavour and pies • Breakfast trial including coffee, int
Slide 10: KFC Capex focused on growth
KFC Capex focused on growth For personal use only KFC Capex and Depreciation 25.0 7.00 6.00 20.0 5.00 New Store Openings 15.0 $ millions 4.00 3.00 10.0 2.00 5.0 1.00 0.0 0.00 FY 12 FY 13 FY14 Budget Depreciaton Maint / Systems Refurbishment / Rebuild / Relocate New Units New Unit Builds COLLINS FOOD
Slide 11: New KFC restaurants
New KFC restaurants For personal use only North Lakes Wurtulla Chinchilla Opened 12 August 2013 Opened 11 September 2013 Opened 12 September 2013 Capital spend $1,264k Capital spend $1,169.5k Capital spend $1,222k Projected WSA $51.6k Projected WSA $46.8k Projected WSA $45.5k Actual WSA $56k Actual
Slide 12: Major reimage and rebuild
Major reimage and rebuild For personal use only Maryborough (REIMAGE) Kallangur (REIMAGE) Gympie (REBUILD) Completed 21 June 2013 Re-opened 19 June 2013 Re-opened 24 July 2013 Capital spend $470k Capital spend $437k Capital spend $1,485k Projected WSA $55.7k Projected WSA $69.9k Projected WSA $73.4k
Slide 13: Sizzler in transition
For personal use only Sizzler in transition COLLINS FOODS LIMITED 11
Slide 14: Sizzler performance reflects transition being undertaken
Sizzler performance reflects transition being undertaken For personal use only $million FY13 FY12* Change • Overall revenue flat at $105.6m with Australian Restaurants: SSSG down 2.4% – average** 27.0 26.4 0.6 − casual dining sector impacted more than QSR – period end** 27.0 27.0 – in current econ
Slide 15: Repositioning Sizzler for growth
Repositioning Sizzler for growth For personal use only • Repositioning the Sizzler menu to offer ‘More Choice/Better Value’ − detailed menu development − lunch menu implemented and dinner menu currently being tested • Introducing more relevant and frequent food news through a stronger marketing cale
Slide 16: Sizzler strategic review at core of transformation
Sizzler strategic review at core of transformation For personal use only • Review of Sizzler format, layout and design for a cost efficient and ‘investable’ model − design and layout of a smaller footprint − ideal seating capacity and flow − salad bar format layout and design − improved store econom
Slide 17: Financial information
For personal use only Financial information COLLINS FOODS LIMITED 15
Slide 18: Consolidated income statement
Consolidated income statement For the reporting period ended 28 April 2013 For personal use only 2013 $2012 $000 $000 Revenue 423,885 405,970 Cost of sales (201,711) (192,587) Gross profit 222,174 213,383 Selling, marketing and royalty expenses (89,514) (83,814) Occupancy expenses (33,327) (31,378)
Slide 19: Strong balance sheet
Strong balance sheet For personal use only Balance sheet 28 April 2013 29 April 2012 • Cash up $4.4m to $23.6m $m $m – strong cash flow generation Cash and equivalents 23.6 19.2 • Property, plant and equipment up $1.6m Total current assets 31.8 25.3 to $59.1m Property, plant and 59.1 57.5 – new rest
Slide 20: Strong, growing cashflows
Strong, growing cashflows For personal use only $million FY13 FY12 • Operating cashflow up 15.7% to $41.2m Net operating cash flows before – interest down $9.8m 50.1 51.2 interest and tax → rate and debt down on prior year Net interest paid (6.0) (15.8) – tax paid up $3.1m (tax losses utilised from
Slide 21: FY13 financial results – in line with expectations
FY13 financial results – in line with expectations For personal use only • Revenue up 4.3%(i) to $423.9m • EBITDA down 7.6%(i) to $47.2m • NPAT of $16.4m in line with expectations vs FY12 statutory NPAT of $11.4m and FY12 pro forma(i) NPAT of $18.4m • EPS of 17.6 cents up 22.2% vs FY12 statutory EPS
Slide 22: Year to date and FY14 Outlook
Year to date and FY14 Outlook For personal use only • Gympie rebuild resulted in a sales record • FY14 EBITDA and NPAT growth still for the first seven days expected • Three new KFC stores opened in July and • Improving return on assets September 2013 • Capex spend of $15.0m - $17.5m … on • On targe
Slide 23: Questions
For personal use only Questions COLLINS FOODS LIMITED 21
Slide 24: 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
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