Collins Foods Limited · ASX:CKF
Collins Foods — FY2015 Earnings Presentation
20 slides from Collins Foods's earnings presentation, Jun 25, 2015
Slide 1: FY15 Financial Year Results
For personal use only COLLINS FOODS LIMITED FY15 FINANCIAL YEAR RESULTS 25 June 2015
Slide 2: FY15 financial overview
FY15 financial overview For personal use only FY14 FY15 Significant FY15 Change • Underlying NPAT up 37.4% to $24.6m versus FY14 Underlying[1] Statutory[2] items [3] Underlying[2] $m Underlying • Underlying Revenue up 34.4% up to $571.6m Revenue 425.1 571.6 571.6 34.4% • EBITDA up 37.5% to $67.4m
Slide 3: FY15 operational highlights
FY15 operational highlights For personal use only • Strong top line growth: 46.7% total underlying revenue growth, 4.8% same store sales (SSS) • Built 6 new restaurants and undertook 16 major remodels • Better than internally predicted initial return on WA/NT acquisition • Strong overall margin grow
Slide 4: Strong overall performance across KFC business
For personal use only Strong overall performance across KFC business
Slide 5: Strong growth across KFC
Strong growth across KFC For personal use only FY14 FY15 [1] [2] Change $m Underlying Underlying • Underlying revenue up 46.7% with SSS up 4.8% Restaurants - year end 125 171 46 • 6 new restaurants built, 16 major remodels Revenue 329.3 483.1 46.7% • Disciplined focus on cost controls improving
Slide 6: KFC Brand supported by compelling core products and great brand building
KFC Brand supported by compelling core products and great brand building For personal use only • Strong product offers appealing to our core customer base – Burger Relaunch, Zinger Pie, Hash Double, Zinger Family • Continued innovation around boxed meals - The ‘One Boxed’ meal, HCG Box • Successful
Slide 7: Focus on customer experience to drive top line
Focus on customer experience to drive top line For personal use only • Continue to bring brand to life through customer focused in-store experience • Enhance customer dining experience through contemporary restaurant design • Provide best in class service experience on the front counter • Deliver on
Slide 8: Investing in assets to drive growth
Investing in assets to drive growth For personal use only • Capex of $23.8m for KFC network development 6 new builds 9 major remodels in QLD 7 major remodels in WA 8 minor remodels • Core maintenance and systems capital approximately $5.6m • Investments are delivering returns ahead of intern
Slide 9: Sizzler Australia business now regarded as non-core to strategic growth
For personal use only Sizzler Australia business now regarded as non-core to strategic growth in Australia
Slide 10: Sizzler Australia determined non-core to strategic growth in Australia
Sizzler Australia determined non-core to strategic growth in Australia For personal use only • Sizzler Australia now regarded as non-core to FY14 Significant FY15 Collins Foods strategic growth Total Sizzler Underlying FY15 [2] Change [1] items Underlying $m Limited number of restaurants will be c
Slide 11: Sizzler Asia contributing steady earnings
Sizzler Asia contributing steady earnings For personal use only • Royalty revenue over the year up 12.7% • No net new builds in FY15, 1 relocated in China • 2 new restaurants in Thailand planned for FY16, further growth plans for China in development Page 10
Slide 12: Snag Stand building a foundation for growth
For personal use only Snag Stand building a foundation for growth
Slide 13: Snag Stand showing positive signs
Snag Stand showing positive signs For personal use only • Two Stand openings in FY15: Macquarie Centre and Sunshine Plaza • New format delivering healthy sales and positive consumer feedback • Solid pipeline for network expansion with a new Stand scheduled to open in Pacific Fair in late 2015 • Cont
Slide 14: Financial overview
For personal use only Financial overview
Slide 15: Strong cash generation supporting a healthy balance sheet
Strong cash generation supporting a healthy balance sheet For personal use only FY14 FY15 • Net cash flow positive $4.9m $m • Net operating cash flows before interest and tax up Net operating cash flows before interest and tax 57.5 71.0 $13.5m due to strong EBITDA offset by a working Net interest pa
Slide 16: Stronger debt profile and growing returns
Stronger debt profile and growing returns For personal use only Net Debt / Net Leverage Ratio $140 2.75 $128.0m $122.8m $120 2.50 Net Leverage Ratio $100 2.25 • Net debt down $5.2m to $122.8m 2.22 Net Debt $m $81.4m $80 2.00 1.83 $60 1.75 1.72 • Increased covenant headroom with net $40 1.50 leverage
Slide 17: Balance sheet
Balance sheet For personal use only $m FY14 FY15 • Cash balance up $5.2m to $42.2m Cash and equivalents 37.0 42.2 • Property, Plant & Equipment (PP&E) up Total current assets 44.7 53.1 $7.0m due to new restaurants and remodels partially offset by restaurant depreciation Property, plant and equipment
Slide 18: Looking Forward
Looking Forward For personal use only • Continued disciplined focus on KFC business • 8 new store builds and 18 major remodels • Continued focus on margin improvement in KFC WA/NT • Continue to refine Snag Stand concept with ongoing investment in the brand • Continue to explore new avenues for growt
Slide 19: Questions
For personal use only Questions
Slide 20: 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