Collins Foods Limited · ASX:CKF
Collins Foods — HY15 Earnings Presentation
24 slides from Collins Foods's earnings presentation, Nov 26, 2014
Slide 1: 2015 Interim Results
For personal use only COLLINS FOODS LIMITED 2015 INTERIM RESULTS 26 November 2014
Slide 2: HY15 financial overview
HY15 financial overview For personal use only HY14 HY15 Change • Underlying NPAT up 43.0% to $10.7m HY14 Significant HY14 HY15 Significant HY15 HY14 v HY15 Stat items Underlying Stat items Underlying Underlying $m [1] [2] [3] [4] • Revenue up 29.6% to $256.7m Revenue 198.0 - 198.0 256.7 - 256.7 29.6
Slide 3: HY15 operational overview
HY15 operational overview For personal use only • Positive revenue growth of 6.8% for KFC Qld and 3.7% for KFC WA/NT • EBITDA margin gains across KFC system • Built 3 new restaurants and undertook 10 major remodels and 3 minor remodels • Rolled out all stages of ‘Get Refreshed’ as of November • Remo
Slide 4: KFC has a strong half
For personal use only KFC has a strong half
Slide 5: KFC Qld continues to grow
KFC Qld continues to grow For personal use only HY15 Change • Revenue growth up 6.8% with SSS growth HY14 HY15 Significant HY15 HY14 Stat v Stat Stat items Underlying HY15 of 3.0% $m [1] Underlying Restaurants • 3 new restaurants opened period end 125.0 128.0 128.0 3.0 • EBITDA margin up 280 bps t
Slide 6: KFC WA/NT starts to deliver improvements
KFC WA/NT starts to deliver improvements For personal use only • Revenue growth up 3.7% HY15 $m • SSS growth of 4.3% Restaurants period end 42.0 • 4 restaurants remodelled – 2 major and 2 minor Revenue 52.6 • 1 new restaurant opened post half year – 18 November % SSS 4.3% [1] EBITDA 5.3 • Efficiency
Slide 7: KFC Brand supported by solid pipeline/campaigns
KFC Brand supported by solid pipeline/campaigns For personal use only • Strong new product promotions – Zinger Stacker, Mighty Burger, The One Box, etc – continuing to introduce innovation and excitement to the Brand • Innovative and fun family dinner offerings at centre of Brand strategy • Value of
Slide 8: Investment underpinning future growth
Investment underpinning future growth For personal use only 12 • Total KFC capex of ~ $13.3m for HY15: 10 • ~ $9.7m for Queensland: 8 – 3 new builds – 8 major remodels $m 6 – 1 minor remodels 4 • ~ $3.6m for WA/NT: 2 – 1 new build – November opening 0 – 2 major remodels HY14 HY15 HY15 KFC Qld/NSW KF
Slide 9: New and remodelled KFC Qld restaurants
New and remodelled KFC Qld restaurants For personal use only Page 8
Slide 10: New and remodelled KFC WA/NT restaurants
New and remodelled KFC WA/NT restaurants For personal use only Page 9
Slide 11: Sizzler still in transition
For personal use only Sizzler still in transition
Slide 12: Sizzler Australia starting to show some positive signs
Sizzler Australia while still experiencing top line challenges, is starting to show some positive signs For personal use only • ‘Get Refreshed’ initiatives staring to have a Sizzler Australia SSS 20% positive effect in rate of growth decline • ‘Get Refreshed’ initiatives fully rolled into system 15%
Slide 13: Remodels are resonating positively with Sizzler customers
Remodels are resonating positively with Sizzler customers For personal use only YOY since remodel * 18% 5 weeks 16% 14% 12% 21 weeks 10% 8% 6% 4% 2% 0% Cleveland Caboolture * Up until 26 October 2014 Page 12
Slide 14: Sizzler Australia still experiencing top line challenges
Sizzler Australia still experiencing top line challenges For personal use only HY14 HY15 Change • Total revenue decline of 9.8% HY14 Significant HY14 HY15 HY15 Significant HY14 v HY15 Stat items Underlying Stat Underlying items Underlying [1] $m • Sizzler Australia SSS down 8.4% Restaurants period e
Slide 15: Sizzler to undergo a strategic review post summer campaign
Sizzler to undergo a strategic review post summer campaign For personal use only • All ‘Get Refreshed’ initiatives rolled out by end of November • 3 front of house remodels – Cleveland, Sizzler to undergo a strategic review Caboolture and Mermaid Beach post the summer campaign • 1 front of house ‘li
Slide 16: Sizzler Asia continues to perform
Sizzler Asia continues to perform For personal use only • Royalty revenue over HY14 up 8.4% Sizzler Restaurants in Asia • China opened 1 restaurant and closed 1 restaurant • Plan to open a couple of new 9 restaurants in China and Thailand during FY15 9 43 China Japan Thailand Page 15
Slide 17: Financial information
For personal use only Financial information
Slide 18: Strong cash flows
Strong cash flows For personal use only HY14 HY15 • Net operating cash flows before interest $m and tax up $4m to $28.2m Net operating cash flows before interest and tax 24.2 28.2 • The income tax instalment rate in the PCP Net interest paid (2.8) (4.2) was low due to the lag effect of the IPO Incom
Slide 19: Comfortable debt profile
Comfortable debt profile For personal use only • Increased overall debt facilities in March 2014 Net debt () v Net leverage ratio (–) to $175m up from $145m to support 150 2.75 KFC WA/NT acquisition 2.50 125 • Net debt at half year – $131.7m 2.25 100 • Adequate covenant headroom – net leverage Net
Slide 20: Strong balance sheet
Strong balance sheet For personal use only 27 April 2014 12 October 2014 • Decrease in cash of $3.7m to $33.3m $m Cash and equivalents 37.0 33.3 • Prepaid rent at half year out of sync with full year by ~ half a month Total current assets 44.7 42.9 Property, plant and equipment 72.5 74.9 • Property,
Slide 21: Breakdown of corporate overhead / administration costs
Breakdown of corporate overhead / administration costs For personal use only HY15 % • For reporting purposes Collins Foods $’000s Revenue have chosen to present their income Management Reporting statement based on the function - Support Centre classification (as opposed to the - Public Company costs
Slide 22: Priorities for remainder of FY15
Priorities for remainder of FY15 For personal use only • Return Sizzler Australia to positive growth through ‘Get Refreshed’ • Undertake strategic review of Sizzler post summer campaign • Continue focus on improving KFC WA/NT operational performance • Build 2 more KFC restaurants over and above 4 bu
Slide 23: Questions
For personal use only Questions
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