Collins Foods Limited · ASX:CKF
Collins Foods — HY23 Earnings Presentation
36 slides from Collins Foods's earnings presentation, Nov 30, 2022
Slide 1: Amendment to HY23 Results Presentation
For personal use only 30 November 2022 ASX Market Announcements Office 10 Bridge Street SYDNEY NSW 2000 Via ASX Online Dear Sir/ Madam COLLINS FOODS LIMITED (COLLINS FOODS) – AMENDMENT TO HY23 RESULTS PRESENTATION Please find attached an amended version of Collins Foods’ HY23 Results Presentation fo
Slide 2: HY23 Results
Collins For personal use only Foods Limited HY23 RESULTS 2 May 2022 to 16 OCTOBER 2022 29 November 2022 Authorised for release by the Board ACN 151 420781
Slide 3: Sales momentum maintained amidst challenging landscape
Sales momentum maintained amidst challenging landscape For personal use only • Revenue up 15.0% to $614.3m with growth across all business HY22 HY23 HY23 Underlying Underlying* Change Underlying units ($m) POST AASB 16 POST AASB 16 PRE AASB 16 • Statutory NPAT of $11.0m (HY22: $26.4m) includes $11.9
Slide 4: KFC same store sales growth the highlight in HY23
Kfc same store sales growth the HIGHLIGHT in HY23 For personal use only KFC KFC Taco Bell Australia Europe Australia • HY23 SSS growth of +5.1% • HY23 SSS growth of +10.4% reflecting • HY23 SSS decline of –7.8% as brand predominantly driven by growth in combination of increased ticket and works thro
Slide 5: Kentucky Fried Chicken Australia
For personal use only Kentucky Fried Chicken Australia
Slide 6: Solid top-line growth mitigates margin headwinds
Solid top-line growth mitigates margin headwinds For personal use only HY22 HY23 HY23 • Revenue up 10.6% to $479.6m Change Underlying Underlying* Underlying • SSS growth of +5.1% reflects ticket increase from combined POST AASB 16 POST AASB 16 PRE AASB 16 impacts of pricing and shifts toward deliver
Slide 7: KFC brand continues to be well positioned
KFC brand continues to be well positioned For personal use only • KFC retains leadership position amongst QSR brands in critical Value and Quality metrics*, with consideration continuing to improve • Brand strength and heritage considered critical attributes for weathering periods of economic uncert
Slide 8: E-commerce sales have grown to >22% of total sales
E-commerce sales have grown to >22% of total sales For personal use only • Ongoing growth in digital and delivery, continuing the strategy of meeting customers where they are, with e- commerce (delivery, web, app) accounting for 22.2% of total sales in HY23, up from 16.3% prior year ‒ delivery sales
Slide 9: Innovation a key feature in development initiatives
INNOVATION a key feature in DEVELOPMENT initiatives For personal use only • 2 new restaurants opened in HY23 and 1 restaurant acquired, 2 additional openings so far in H2 Queen street mall, QLD • On track to build 9 to 12 restaurants in FY23, ahead of development agreement requirement of 7 to 8 rest
Slide 10: Kentucky Fried Chicken Europe
For personal use only Kentucky Fried Chicken Europe
Slide 11: Impressive same store sales growth in KFC Europe
Impressive same store sales growth in kfc europe For personal use only HY22 HY23 HY23 • Revenue up 32.0% to $111.8m underpinned by strong SSS growth Change Underlying Underlying* Underlying and benefit of acquisitions made during FY22 POST AASB 16 POST AASB 16 PRE AASB 16 • Significant further growt
Slide 12: Focus on core products and everyday value is resonating with consumers
Focus on core products and everyday value is resonating with consumers For personal use only • Sales in both European markets now considerably over pre-COVID levels: +15.9%* in Netherlands, +24.7%* in Germany • In Netherlands, shift from disruptive value to everyday value, menu mix shifts, re-bundli
Slide 13: Pipeline continues to expand as Netherlands grows to scale
pipeline continues to expand as netherlands grows to scale For personal use only • Netherlands development potential being unlocked under CFA New Drive-thru opening ‒ 2 KFC restaurants opened by sub-franchisees in HY23, 3 new Collins Foods KFC restaurants to open in December ‒ on track to achieve to
Slide 14: Benefits from Netherlands CFA now starting to show
Benefits from netherlands cfa now starting to show For personal use only Successful start to CFA underpins Collins Foods' position as a KFC growth partner • Successful integration of Yum! and Collins Foods' support teams achieved under CFL leadership, enhancing local capability and a unified culture
Slide 15: Taco Bell Australia
For personal use only Australia Taco bell
Slide 16: Revenue growth driven by increased restaurant count
Revenue growth driven by increased Restaurant count For personal use only HY22 HY23 HY23 • Revenue up 42.6% to $21.1m reflecting increase in restaurant Change Underlying Underlying* Underlying numbers from 17 to 24 POST AASB 16 POST AASB 16 PRE AASB 16 • SSS decline of –7.8% Restaurants • EBITDA pro
Slide 17: Value-oriented marketing and delivery expansion expected to drive H2 sales
focus on value-oriented marketing, combined with delivery expansion, expected to drive sales in H2 For personal use only • Negative same store sales in H1 attributable to ‒ economic uncertainty shifting consumers back towards traditional brands ‒ increasingly competitive QSR landscape ‒ marketing tr
Slide 18: New restaurant rollout paused to regain sales traction
New restaurant rollout paused to regain sales traction For personal use only • 4 drive-thru restaurants opened in HY23 ‒ Hoppers Crossing, VIC on 17 May 2022 ‒ Ellenbrook, WA on 19 May 2022 ‒ Narre Warren, VIC on 16 June 2022 ‒ Canning Vale, WA on 15 July 2022 Hoppers crossing, VIC • 24 total restau
Slide 19: Asia Sizzler
For personal use only Asia Sizzler
Slide 20: Positive recovery in Sizzler Asia
Positive recovery in Sizzler Asia For personal use only HY22 HY23 # # Change Statutory Statutory Revenue ($m) 0.9 1.8 100.0% EBITDA ($m) 0.4 1.2 200.0% JAPAN % margin 45.7% 66.7% 2,100 bps 10 EBIT ($m) 0.2 0.9 350.0% % margin 16.7% 50.0% 3,330 bps # There is no impact from AASB 16 • Royalt
Slide 21: Financial Performance
For personal use only Financial Performance
Slide 22: Cash flow supports growth initiatives and dividends
Cash flow supports growth initiatives and dividends For personal use only HY22 Hy23 HY23 • Net operating cash flow (post AASB 16) of $69.1m, supports business investment and interim POST AASB 16 POST AASB 16 PRE AASB 16 ($m) dividend Net operating cash flow before interest and tax 89.8 85.4 59.1 • N
Slide 23: Balance sheet reflects growing restaurant footprint
Balance sheet reflects growing restaurant footprint For personal use only • Cash balance of $93.4m, down $3.8m from 1 MAY 2022 16 Oct 2022 16 Oct 2022 prior year end ($m) POST AASB 16 POST AASB 16 PRE AASB 16 • Property, plant and equipment of $211.4m Cash and equivalents 97.2 93.4 93.4 reflects new
Slide 24: Significant funding capacity and covenant headroom supports growth initiatives
Significant Funding capacity and covenant headroom supports growth initiatives For personal use only • Net leverage ratio* (pre AASB 16) of 1.31x Net debt ($m)/ net leverage ratio* ‒ significant headroom to covenant maximum of 2.75x • Net debt of $191.1m(1) $203.2 ‒ Increased by $16.2m since FY22 du
Slide 25: Outlook
For personal use only OUTLOOK
Slide 26: Strong KFC top-line underpins growth plans, with Taco Bell rollout pause
Strong kfc top-line underpins growth plans, with taco bell rollout pause to regain sales traction For personal use only KFC KFC Taco Bell Australia Europe Australia • First 6 weeks H2 FY23 SSS growth of +5.6% • First 6 weeks H2 FY23 SSS growth of +14.8% • First 6 weeks H2 FY23 SSS decline of –8.5%,
Slide 27: Collins Foods' long-term success recipe
COLLINS FOODS' LONG-TERM SUCCESS RECIPE For personal use only Collins foods' strengths are well-suited to navigate a turbulent environment • A healthy balance sheet • World-class, scalable brands • Specialisation in the resilient, value-centric QSR sector • Operational excellence focus • Management
Slide 28: For personal use only
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Slide 29: Appendix
For personal use only APPENDIX
Slide 30: Making a positive impact
Making a positive impact For personal use only Our people, our communities and our planet deserve our wholehearted commitment. We want our growth to be sustainable Currently, the three primary goals remain unchanged. Significant progress to highlight during HY23 • Installation of solar panel systems
Slide 31: Group results summary
Group results summary For personal use only Post AASB 16 Pre AASB 16 HY23 HY23 HY22 HY23 HY23 HY22 HY23 HY23 Non-trading Change Non-trading Change Underlying Statutory Underlying Underlying Statutory Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB
Slide 32: KFC Australia results summary - pre AASB
KFC Australia results summary - pre AASB 16 For personal use only HY23 HY22 Statutory & Change Underlying Underlying PRE AASB 16 PRE AASB 16 Restaurants Half year end (no.) 254 264 10 Revenue ($m) 433.7 479.6 10.6% % SSS 0.1% 5.1% EBITDA ($m) 77.2 75.6 (2.1%) % margin 17.8% 15.8% (200) bps E
Slide 33: KFC Europe results summary
KFC Europe results summary For personal use only Post aasb 16 Pre aasb 16 HY23 HY23 HY22 HY23 HY23 HY22 HY23 HY23 Non-trading Change Non-trading Change Underlying Statutory Underlying Underlying Statutory Underlying items items POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB
Slide 34: Taco Bell results summary
Taco Bell results summary For personal use only Post aasb 16 Pre aasb 16 HY23 HY23 HY22 HY23 HY23 HY22 HY23 HY23 Non-trading Change Non-trading Change Underlying Statutory Underlying Underlying Statutory Underlying items items POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB
Slide 35: Non trading items summary
non trading items summary For personal use only Post aasb 16 Pre aasb 16 EBITDA EBIT NPAT EBITDA EBIT NPAT ($m) POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 Restaurant impairments – taco bell 0.1 16.9 11.9 0.1 7.9 5.6 Acquisition and operational integration costs 1.9 1.
Slide 36: For further information please contact
For further information please contact CORPORATE Drew O’Malley For personal use only Managing Director & CEO P: +61-7 3352 0800 INVESTORS Ronn Bechler Automic Markets P: +61-400 009 774 E: ronn.bechler@automicgroup.com.au MEDIA Tristan Everett Automic Markets P: +61-403 789 096 E: tristan.everett@au