Collins Foods Limited · ASX:CKF
Collins Foods — HY25 Earnings Presentation
30 slides from Collins Foods's earnings presentation, Dec 3, 2024
Slide 1: HY25 Results
HY25 RESULTS 29 April 2024 to 13 October 2024 3 December 2024 Authorised for release by the Board
Slide 2: Xavier Simonet, Managing Director & CEO
Xavier Simonet Managing Director & CEO
Slide 3: Challenging consumer environment impacting short-term performance
challenging consumer environment IMPACTING SHORT-TERM PERFORMANCE (1) (1) (1) Revenue Underlying EBITDA Underlying NPAT Fully Franked Interim Dividend 1.2% 6.6% 23.8% to $23.7m (HY24: $31.2m) 11.0 cps to $703.5m to $102.7m (2) (HY24: 12.5 cps) (HY24: $695.2m) (HY24: $109.9m) Statutory NPAT 52.2% to
Slide 4: Maintaining brand & share metrics in a resilient category
Maintaining brand & share metrics IN a RESILIENT category KFC Australia KFC EUROPE Taco bell (1) (1) (1) • HY25 sales up 2.7%; SSS growth (0.1%) • HY25 sales growth (3.4%); SSS growth • HY25 SSS growth (0.3%) • Maintaining brand share (2) in challenging (3.8%) with Netherlands SSS (3.3%) and • Digit
Slide 5: Financial performance
ge N a Ba? FINANCIAL < PERFORMANCE
Slide 6: Difficult environment impacting short term performance
difficult environment impacting short term performance HY25(3) HY24 Change Underlying Underlying ($m) Revenue continuing operations (1) 703.5 695.2 ⁽²⁾ 1.2% # • Revenue $703.5m, up 1.2%, with modest growth in Australia offset by softness in Europe; disposable income remains a challenge for consumers
Slide 7: Income statement
INCOME STATEMENT HY25 Non-Trading HY25 HY24 Change Statutory Items Underlying Underlying ($m) • Reconciling items between statutory and underlying results: Revenue 703.5 – 703.5 695.2 ⁽¹⁾ 1.2% # – $(0.6)m NPAT - release of Taco Bell lease liability upon EBITDA 103.2 (0.6) 102.7 109.9 (6.6)% $ settle
Slide 8: Strong cash flows, funding investment & dividends
strong CASH FLOWS, FUNDING INVESTMENT & DIVIDENDS HY25 HY24 ($m) Net operating cash flows before interest and tax 105.5 113.1 • Net operating cash flow strong at $75.3m; whilst lower than prior year on lower EBITDA, cash conversion strong at 108% Net interest paid (3.7) (4.3) • Investing cash outflo
Slide 9: Balance sheet enabling investment in growth
BALANCE SHEET ENABLING INVESTMENT IN GROWTH 13 October 2024 28 April 2024 ($m) Cash and equivalents 88.6 83.8 • Net debt down $6.6m to $158.9m driven by strong cash generation Other current assets 21.8 25.8 and disciplined allocation of capital Total current assets 110.4 109.6 – significant investme
Slide 10: KFC Australia
kfc AUSTRALIA
Slide 11: Performance reflecting market conditions
PERFORMANCE REFLECTING market conditions SHOWING SIGNS OF levelLing out HY25(1) HY24 Change Underlying Underlying Restaurants at year end (no.) 285 275 10 # • Revenue up 2.7% to $536.8m (2) – SSS growth (0.1%), trending up gradually during the period Revenue ($m) 536.8 522.9 2.7% # (2) – cycling 2 y
Slide 12: Everyday value, menu innovation & brand-in-culture
everyday Value, MENU innovation & Brand-in-culture initiatives reinforcing brand health • Maintaining share and performance on brand BRAND INDEX V. Has the best Brand Buzz Likelihood to (1) metrics in a challenged QSR category as cost COMPETITORS tasting chicken YouGov Q3 Recommend of living pressur
Slide 13: KFC Europe
kfc eUROPE
Slide 14: Results reflect tough consumer environment
RESULTS REFLECT TOUGH consumer environment HY25(2) HY24 Change Underlying Underlying Restaurants at year end (no.) 74 72 2 # • Revenue down 3.4% to $142.1m, reflecting soft consumer sentiment and affordability issues arising from cost of living pressures Revenue ($m) 142.1 147.2 ⁽¹⁾ (3.4)% $ – SSS g
Slide 15: Market share maintained, brand metrics up
market share maintained, brand metrics up • Market share maintained, driven by value, innovation (1) and taste (2) • Digital growing , contributing 60.4% and 64.5% of sales in Netherlands and Germany • Brand metrics improved with awareness up +2.4 pp on (3) pcp to 23% and consideration up +2.8pp to
Slide 16: Taco Bell Australia
TACO BELL aUSTRALIA
Slide 17: Flat performance reflects difficult consumer environment
FLAT PERFORMANCE REFLECTS DIFFICULT CONSUMER ENVIRONMENT HY25(1) HY24 Change Underlying Underlying Restaurants at year end (no.) 27 27 – • Revenue down 2.0% to $24.6m – SSS growth (0.3%) (HY24: SSS of +7.9%) Revenue ($m) 24.6 25.1 (2.0)% $ – cycling significant Uber investment in pcp (2) % SSS (0.3%
Slide 18: Marketing, quality, innovation & consumer experience
marketing, Quality, innovation & consumer experience LIFTING BRAND HEALTH (1) • Digital 29.9% of total sales - flat vs. pcp • Continued focus on everyday value at $5 and $10 price points has (2) driven value metrics • Consumer metrics trending up (2) – Brand Index continues to grow driven by both qu
Slide 19: Outlook
OUTLOOK ‘ciate abe MAKE IT ‘A COMBO
Slide 20: Consumer spending and inflation to impact margins for balance FY25
CONSUMER SPENDING AND INFLATION TO IMPACT MARGINS FOR BALANCE FY25 KFC Australia KFC EUROPE Taco bell • First 7 weeks 2H25 sales +3.9%, SSS +0.8%, • First 7 weeks 2H25 Europe sales (1.6)% • First 7 weeks 2H25 SSS (1.4)% gradual improvement in trend – SSS (3.5)% Netherlands, (0.4)% Germany • Investme
Slide 21: FY25 guidance
FY25 GUIDANCE (POST AASB16 BASIS) Full year FY25 underlying EBITDA margins expected to be in range GROUP of: 14.2%-14.7% (FY24: 15.4%) MARGINS Full year FY25 underlying EBIT margins expected to be in range of: 6.8%-7.3% (FY24: 8.3%) GROUP ESTIMATED Full year FY25 interest ~$42m INTEREST (FY24 underl
Slide 22: Strong fundamentals and profitable growth opportunities
Strong fundamentals and PROFITABLE growth opportunities • Proven strong and resilient business • Long term relationship with Yum! • Operating world-class QSR brands in attractive markets • Well positioned to benefit as consumer confidence returns • Laser-focus on operational excellence to drive orga
Slide 23: Questions
QUESTIONS
Slide 24: Appendix
COLLINS FOODS LIMITED APPENDIX
Slide 25: Group results summary
Group results summary Post aasb 16 Pre aasb 16 HY25 HY25 HY25 HY25 HY24 HY25 HY25 HY24 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($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 26: KFC Australia results summary
KFC Australia results summary Post aasb 16 Pre aasb 16 HY25 HY25 HY25 HY25 HY24 HY25 HY25 HY24 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 1
Slide 27: KFC Europe results summary
KFC Europe results summary Post aasb 16 Pre aasb 16 HY25 HY25 HY25 HY25 HY24 HY25 HY25 HY24 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 P
Slide 28: Taco Bell results summary
Taco Bell results summary Post aasb 16 Pre aasb 16 HY25 HY25 HY25 HY25 HY24 HY25 HY25 HY24 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 PR
Slide 29: HY25 non-trading items summary
HY25 non-trading items summary Post aasb 16 Pre aasb 16 EBITDA EBIT NPAT EBITDA EBIT NPAT ($m) POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 Taco Bell make-good asset write-off 0.3 0.3 0.2 – – – Taco Bell lease settlement (0.9) (0.9) (0.6) (0.9) (0.9) (0.6) TOTAL NON-TRA
Slide 30: For further information please contact
For further information please contact INVESTORS Adrian Mulcahy Collins Foods Limited Automic Group ACN 151 420 781 Level 3, KSD1, 485 Kingsford Smith Drive P: +61 438 630 422 Hamilton QLD 4007 E: adrian.mulcahy@automicgroup.com.au AUSTRALIA www.collinsfoods.com MEDIA Michelle Audsley Automic Group