Collins Foods Limited · ASX:CKF
Collins Foods — FY2024 Earnings Presentation
31 slides from Collins Foods's earnings presentation, Jun 25, 2024
Slide 1: FY24 Results
FY24 RESULTS 1 May 2023 to 28 April 2024 25 June 2024 Authorised for release by the Board
Slide 2: Record revenue, earnings up in challenging market
record revenue, EARNINGS UP in challenging market Revenue* Underlying EBITDA* Statutory NPAT** Total FY24 Fully Franked Dividend 10.4% 12.0% 501.9% to $1,488.9m to $229.8m to $76.7m (FY23: $12.7m) 28.0 cps (FY23: $205.1m) Underlying NPAT* Final: 15.5 cps (FY23: $1,348.6m) Interim: 12.5 cps 15.6% (FY
Slide 3: Maintaining brand share, positive same store sales
maintaining brand share, positive same store sales KFC Australia KFC EUROPE Taco bell • FY24 SSS growth +3.8% • FY24 SSS growth +4.9% • FY24 SSS growth +3.5%, cycled Uber Eats launch in H2 • Digital driving growth, now 30.6% of sales • Netherlands SSS growth +4.3% and vs. 24.3% for same period last
Slide 4: Financial Performance
=_l = we < z _ “PERFORMANCE
Slide 5: Solid financial result; growth across all key metrics
solid financial result; growth across all key metrics FY24* FY23 Change Underlying Underlying ($m) Revenue continuing operations (1) 1,488.9 1,348.6 ⁽²⁾ 10.4% • Record revenue $1,488.9m, up 10.4%, growth in all business units # • Underlying EBITDA up 12.0% to $229.8m with sales growth and cost (1) E
Slide 6: Income Statement
INCOME STATEMENT FY24 Discontinued Non-Trading FY24 FY23 Change Statutory Operations Items Underlying Underlying ($m) Revenue 1,489.7 (0.8) – 1,488.9 1,348.6 ⁽¹⁾ 10.4% • Main reconciling items between statutory # and underlying results EBITDA 250.7 (21.2) 0.2 229.8 205.1 12.0% # – $21.1m NPAT discon
Slide 7: Cash generation underpinning investment, debt reduction & dividends
Cash GENERATION UNDERPINNING INVESTMENT, DEBT REDUCTION & DIVIDENDS FY24 FY23 ($m) Net operating cash flows before interest and tax 233.4 208.2 • Net operating cash flows up $30.2m, to $176.4m: Net interest paid (7.6) (6.4) – pre-tax cash flows up on higher earnings Interest paid on leases (28.9) (2
Slide 8: Healthy balance sheet facilitating re-investment
healthy BALANCE SHEET facilitating re-investment 28 April 2024 30 April 2023 ($m) Cash and equivalents 83.8 80.2 • Net debt down $46.7m to $165.5m driven by Sizzler Asia sale and Other current assets 25.8 50.1 strong cash generation Total current assets 109.6 130.3 – significant investment capacity
Slide 9: KFC Australia
COLLINS FOODS LIMITED,
Slide 10: Greater scale, brand strength & operations lift earnings
GREATER SCALE, BRAND STRENGTH & OPERATIONS LIFT EARNINGS FY24* FY23 Change Underlying Underlying Restaurants at year end (no.) 279 272 7 # • Revenue up 6.6% to $1,121.0m in challenging consumer environment – SSS growth +3.8% Revenue ($m) 1,121.0 1,051.3 6.6% # • EBITDA up 9.8% to $221.4m % SSS 3.8%
Slide 11: Value & product innovation underpin brand strength
Value & product innovation UNDERPIN BRAND strength • KFC holding share nationally, remaining ahead of major BRAND INDEX V. COMPETITORS competitors in value and YUM RED SURVEY: TASTE Q2 2024 (Data collected for Q2 2024 w/c 8 April 2024) brand index metrics • Core product improvements with launch of O
Slide 12: Unlocking capacity in restaurants through innovation
unlocking capacity in restaurants through innovation • Digital at 30.6% of sales, up 6.3 percentage points on prior year, driven by DIGITAL SALES (%) app adoption • Developing plans to accelerate kiosk roll- 30.6 28.1 out across our network 24.3 22.2 • Modernising assets with 70 remodels 16.8 18.2 1
Slide 13: KFC Europe
COLLINS FOODS LIMITED, Sn. EUROPE
Slide 14: Strong performance in tough economic environment
STRONG PERFORMANCE in tough economic ENVIRONMENT • Revenue up 26.1% to $313.5m, reflecting growing network, organic growth and FY24* FY23 Underlying Underlying Change favourable currency translation • SSS +4.9% following a very strong prior year Restaurants at year end (no.) 75 64 11 # – Netherlands
Slide 15: Record brand metrics, share gains supported by innovation
RECORD BRAND METRICS, SHARE GAINS SUPPORTED BY INNOVATION • Gaining market share, driven by value promotions and product innovation • Digital growing, now contributing 59.5% and 57.9% of sales in Netherlands and Germany • Brand metrics at record highs with awareness up +7.8 percentage points on prio
Slide 16: Footprint growth despite development & energy challenges
FOOTPRINT GROWTH DESPITE Development & energy challenges • Network of 59 restaurants in Netherlands; Steenwijk (DelCo) growing development pipeline with new opened - DEC 2023 builds to double in FY25 Collins Foods Europe first battery-supported • Industry-first battery-supported restaurant, restaura
Slide 17: Taco Bell Australia
COLLINS FOODS LIMITED, AUSTRALIA
Slide 18: Momentum building with revenue & same store sales growth
momentum building with revenue & SAME STORE SALES growth FY24* FY23 Change Underlying Underlying Restaurants at year end (no.) 27 28 (1) • Revenue up 11.7% to $54.4m $ • SSS growth +3.5% (FY23: SSS of -4.8%), driven by Uber Eats and Revenue ($m) 54.4 48.7 11.7% # improved marketing % SSS 3.5% (4.8%)
Slide 19: Recovery led by quality, innovation & effective marketing
RECOVERY led by quality, innovation & Effective marketing • Digital 30.4% of total sales, aiding brand awareness and consumer trial • Core value range and promotional activity supporting in-restaurant sales • Ingredient improvements lifting quality and value • New product innovation at value price p
Slide 20: ESG: improving the sustainability of our operations
ESG: improving the sustainability of our operations PROGRESSING ESG INITIATIVES ACROSS FIVE KEY PILLARS operations People Communities planet governance Economic impact & Employment Customer health & safety Energy emissions labour law performance 20,785 team members, 445 500+ accredited Food Safety S
Slide 21: Outlook
COLLINS FOODS LIMITED,
Slide 22: Growth focused while protecting long term brand health
growth focused while protecting long term brand health KFC Australia KFCEUROPE KFC EUROPE Taco bell • First 7 weeks FY25 sales +1.5%, SSS (0.8)% - • First 7 weeks FY25 Europe sales (0.1)% • First 7 weeks FY25 SSS of +0.6% weaker consumer sentiment & lapping – SSS (2.3)% Netherlands, (2.8)% Germany •
Slide 23: QSR brands resilient in challenging market
QSR BRANDS resilient in CHALLENGING market WELL PLACED TO DELIVER Sustainable long term GROWTH • leveraging strength of world class brands • prioritising LONG TERM performance & consumer trust • PROVEN GROWTH STRATEGY BASED ON everyday value, product innovation & accessibility • OPERATIONAL, SUPPLY
Slide 24: Collins Foods Limited
COLLINS FOODS LIMITED
Slide 25: Appendix
COLLINS FOODS LIMITED APPENDIX
Slide 26: Group results summary
Group results summary Post aasb 16 Pre aasb 16 FY24 FY24 FY24 FY24 FY23 FY24 FY24 FY23 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($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 27: KFC Australia results summary
KFC Australia results summary Post aasb 16 Pre aasb 16 FY24 FY24 FY24 FY24 FY23 FY24 FY24 FY23 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 1
Slide 28: KFC Europe results summary
KFC Europe results summary Post aasb 16 Pre aasb 16 FY24 FY24 FY24 FY24 FY23 FY24 FY24 FY23 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 P
Slide 29: Taco Bell results summary
Taco Bell results summary Post aasb 16 Pre aasb 16 FY24 FY24 FY24 FY24 FY23 FY24 FY24 FY23 non-trading Change non-trading Change Statutory Underlying Underlying Statutory Underlying Underlying items items ($m) POST AASB 16 POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 PR
Slide 30: FY24 non-trading items summary
FY24 non-trading items summary Post aasb 16 Pre aasb 16 EBITDA EBIT NPAT EBITDA EBIT NPAT ($m) POST AASB 16 POST AASB 16 POST AASB 16 PRE AASB 16 PRE AASB 16 PRE AASB 16 Refinancing costs 0.4 0.4 0.6 0.4 0.4 0.6 Reverse onerous lease provision - Taco Bell (1.7) (1.7) (1.2) (2.2) (2.2) (1.6) Restaura
Slide 31: For further information please contact
For further information please contact CORPORATE Andrew Leyden Group CFO P: +61-7 3352 0800 INVESTORS Adrian Mulcahy Automic Markets P: +61-438 630 422 E: adrian.mulcahy@automicgroup.com.au MEDIA Tristan Everett Automic Markets P: +61-403 789 096 E: tristan.everett@automicgroup.com.au DISCLAIMER Col