Collins Foods Limited · ASX:CKF
Collins Foods — HY2024 Earnings Presentation
29 slides from Collins Foods's earnings presentation, Nov 28, 2023
Slide 1: HY24 Results
Collins Foods Limited HY24 RESULTS 1 May 2023 to 15 October 2023 28 November 2023 Authorised for release by the Board ACN 151 420781
Slide 2: Delivering growth in challenging consumer conditions
Delivering growth in challenging consumer conditions HY23 HY24* Change Underlying Underlying ($m) POST AASB 16 POST AASB 16 Revenue continuing operations [1] 609.4 [3] 696.5 [2] 14.3% ↑ • Revenue up 14.3% to $696.5m, solid growth across all business units EBITDA continuing operations [1] 94.2 109.9
Slide 3: Brand strength, value & e-commerce underpin performance
Brand strength, value & e-commerce underpin performance KFC Australia KFC eUROPE Taco bell • HY24 SSS growth +6.6% • HY24 SSS growth +8.8% • HY24 SSS growth +7.9% • Leading the QSR market on critical brand • Netherlands SSS growth of +7.9% and • Product quality improvements, value-led metrics German
Slide 4: KFC Australia
KFC AUSTRALIA
Slide 5: Year-on-year topline growth with margins slightly ahead of prior year
year-on-year topline growth with margins slightly ahead of PRIOR YEAR HY23 HY24* Change Underlying Underlying ($m) POST AASB 16 POST AASB 16 Restaurants at HY end (no.) 264 275 11 ↑ • Strong track record of revenue growth, HY24 up 9.0% to $522.9m Revenue ($m) 479.6 522.9 9.0% ↑ ‒ SSS growth +6.6 % %
Slide 6: World-class brand demonstrates resilience
World-class brand demonstrates resilience KFC (AU) / QSR (Casual dining) (AU) • KFC continues to lead the market on brand fundamentals with consideration and brand index at a record high, leading the industry SCORE • Marketing and media focused on value at key price points • Value offers strengthene
Slide 7: Restaurant design & digital innovation driving sales
RESTAURANT Design & digital innovation drivING sales • Digital sales (delivery, web, app, kiosk) growing, up 5.9 percentage points on prior year to 28.1% of Sales (%) E-commerce sales 28.1 • Delivery sales mix consistent across aggregators 24.3 22.2 and delivery-as-a-service (DaaS) 18.2 16.8 • Lever
Slide 8: KFC Europe
KFC Europe
Slide 9: Growth prospects strengthen as revenue doubles in three years
growth prospects strengthen as revenue doubles in three years HY23 HY24* Change Underlying Underlying ($m) POST AASB 16 POST AASB 16 • Revenue up 36.5% to $148.5m, driven by growing footprint and same Restaurants at HY end (no.) 62 72 10 ↑ store sales growth; revenue up 2.3x over three years Revenue
Slide 10: Digital & brand strength lifting market share & sales
Digital & brand STRENGTH LIFTING market share & sales • Solid SSS growth in Netherlands and Germany, despite cycling substantial growth in prior year • New KFC app and digital platform (MENU) successfully launched • Digital in Netherlands now 57.0% of total sales, up from 48.0% prior year • Brand aw
Slide 11: Investment in resources & innovation supporting European development plans
INVESTMENT IN RESOURCES & INNOVATION SUPPORTING EUROPEAN DEVELOPMENT PLANS • Netherlands network 56 restaurants, includes eight newly acquired - successfully integrated and performing • Pipeline continues to build in line with long-term CFA target of 130 net new restaurants by 2031 • Netherlands a g
Slide 12: Taco Bell Australia
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Slide 13: Taco Bell returns to positive same store sales
Taco Bell returns to positive same store sales HY23 HY24* Change Underlying Underlying POST AASB 16 POST AASB 16 Restaurants at HY end (no.) 24 27 3↑ Revenue ($m) 21.1 25.1 18.9% ↑ • Revenue up 18.9% to $25.1m % SSS (7.8)% 7.9% • SSS growth +7.9% (HY23: SSS of –7.8%) • EBITDA profitability at restau
Slide 14: Improved product quality, innovation & value focus resonating with consumers
Improved product quality, innovation & value focus resonating with consumers • Everyday value across menu benefiting revenues • Improved quality meeting and exceeding consumer expectations on taste and value, including national launch of McCain ultra-premium 'Sure Crisp’ French fries • Higher invest
Slide 15: Financial Performance
Financial Performance
Slide 16: Income Statement
INCOME STATEMENT HY24 Discontinued Non-Trading Reclass HY24 HY23 Change Statutory Operations items BUSINESS Underlying Underlying RENTAL INCOME RECONCILIATION OF UNDERLYING AND ($m) POST AASB 16 POST AASB 16 POST AASB 16 STATUTORY RESULTS Revenue 696.0 (0.8) – 1.3 696.5 609.4 14.3% ↑ • Underlying re
Slide 17: Cash Flow Statement
CASH FLOW STATEMENT HY23 HY24 Strong cash flows APPLIED TO INVESTMENTS ($m) POST AASB 16 POST AASB 16 IN GROWTH, DEBT REDUCTION AND DIVIDENDS Net operating cash flows before interest and tax 85.4 113.1 • Net operating cash flow after interest and tax up $25.1m, to $82.2m Net interest paid (2.3) (4.3
Slide 18: Balance Sheet
BALANCE SHEET 30 APRIL 15 OCTOBER 2023 2023 Significant CASH GENERATION & PROCEEDS ($m) POST AASB 16 POST AASB 16 OF sizzler sale further strengthen Balance sheet Cash and equivalents 80.2 98.1 • Cash balance $98.1m, up $17.9m from end of FY23 due to sale of Sizzler Asia Other current assets 50.1 25
Slide 19: Outlook
CL OUTLOOK
Slide 20: Doubling down on growth in challenging landscape
Doubling down on growth in challenging landscape KFC Australia KFC eUROPE Taco bell • First six weeks H2 FY24 SSS of +2.9% • First six weeks H2 FY24 SSS of: • First six weeks H2 FY24 SSS of +8.7%, although +8.1% (Netherlands), +8.6% (Germany) cycling against Uber Eats launch from • Between five to e
Slide 21: Resilient value brands underpin long-term success
resilient value brands underpin long-term success • Proven track record of ORGANIC & INORGANIC GROWth • RESILIENT, WORLD CLASS BRANDS • Specialisation in value-centric QSR sector • Operational excellence focus • STRONG balance sheet AND CASH GENERATION • LEADERSHIP team capability 20
Slide 22: Collins Foods Limited
COLLINS FOODS LIMITED
Slide 23: Appendix
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Slide 24: Group results summary
Group results summary Post aasb 16 Pre aasb 16 HY24 HY24 HY23 HY24 HY24 HY23 HY24 HY24 non-trading Change non-trading Change Underlying Statutory Underlying Underlying Statutory Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 PRE AA
Slide 25: KFC Australia results summary
KFC Australia results summary Post aasb 16 Pre aasb 16 HY24 HY24 HY23 HY24 HY24 HY23 HY24 HY24 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 16 PRE AASB 16 PRE
Slide 26: KFC Europe results summary
KFC Europe results summary Post aasb 16 Pre aasb 16 HY24 HY24 HY23 HY24 HY24 HY23 HY24 HY24 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 16 PRE AASB 16 PRE AA
Slide 27: Taco Bell results summary
Taco Bell results summary Post aasb 16 Pre aasb 16 HY24 HY24 HY23 HY24 HY24 HY23 HY24 HY24 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 16 PRE AASB 16 PRE AAS
Slide 28: HY24 non-trading items summary
hY24 non-trading items summary 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 – 2.0 1.4 – 0.4 0.3 Reverse onerous lease provision - Taco Bell (2.0) (2.0) (1.4) (2.0) (2.0) (
Slide 29: For further information please contact
For further information please contact CORPORATE Andrew Leyden Group CFO 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@automicgroup.com.au Disclaimer All fig