Collins Foods Limited · ASX:CKF
Collins Foods — FY2017 Earnings Presentation
22 slides from Collins Foods's earnings presentation, Jun 26, 2017
Slide 1: FY17 Full Year Results
For personal use only COLLINS FOODS LIMITED FY17 FULL YEAR RESULTS 26 June 2017 ACN 151 420 781
Slide 2: FY17: strong growth across key financial metrics
FY17: strong growth across key financial metrics For personal use only FY16 FY17 FY17 FY17 Change vs • Revenue up 10.3% to $633.6m Underlying Statutory Significant Underlying FY16 [1] Items Underlying • Statutory EBITDA up 5.0% and underlying EBITDA [2] $m up 8.9% to $81.3m Revenue 574.3 633.6 633.6
Slide 3: FY17: significant items summary
FY17: significant items summary For personal use only $m EBITDA EBIT NPAT Acquisition costs Acquisition costs • Aggregated costs for the following acquisitions: Legal due diligence 0.8 0.8 0.8 – 13 restaurants in NSW/VIC (including stamp duty) Legal advice 1.2 1.2 1.2 – 12 restaurants in Germany Fin
Slide 4: FY17: operational snapshot
FY17: operational snapshot For personal use only Australia • Top line revenue growth of 9.5% • Sizzler Australia SSS growth of 0.4% • Revised menu did not create the desired improvement in trading • Same Store Sales (SSS) of 0.7% with • 6 Sizzler restaurants closed during the second half FY17 SSS of
Slide 5: KFC Strategic expansion
For personal use only KFC Strategic expansion Page 4
Slide 6: KFC Australia: organic growth bolstered by acquisitions
KFC Australia: organic growth bolstered by acquisitions For personal use only FY16 FY17 FY17 FY17 Change vs • Revenue up 9.5% to $549.5m: Statutory Statutory Significant Underlying FY16 – the acquisition of 13 stores in the NSW/VIC [2] market items Statutory [1] contributed revenue of $26.0m • Same
Slide 7: KFC Australia: still delivering innovative products
KFC Australia: still delivering innovative products For personal use only Great value ‘New products continue to Value offers such as engage customers whilst our Large Chips & Gravy for $2.50 and $5 value layer continues to Lunch as well as the deliver great results’ introduction of FCBs continue to
Slide 8: KFC Australia: investment driving further growth
KFC Australia: investment driving further growth For personal use only • FY17 capex of circa $19.4m for KFC network development: – 7 new openings with 6 in QLD and 1 in WA – 19 major remodels Burpengary (QLD) – 23 minor remodels • FY17 core maintenance capital circa $3.4m Park Ridge (QLD) Atwell (WA
Slide 9: KFC Australia: acquisition of restaurants
KFC Australia: acquisition of 28 restaurants For personal use only • Acquisition of 28 restaurants in Australia from subsidiaries of Yum! 4 • Restaurants located in WA (6); SA (8); and NORTHERN TERRITORY Tasmania (14) • Acquired restaurants diversify Collins Food’s geographic footprint in Australia
Slide 10: KFC Europe: Germany integration on track
KFC Europe: Germany integration on track For personal use only FY17 FY17 FY17 • Back office set up and integration progressing well: Statutory Significant Underlying items – payroll established and all employees and suppliers paid accurately [1] and on time Restaurants – POS system integration and c
Slide 11: KFC Europe: Netherlands acquisition update
KFC Europe: Netherlands acquisition update For personal use only • Acquisition of 16 restaurants across Netherlands announced on 23 March 2017: – 9 restaurants in Amsterdam, the Hague, Almere and 7 in major southern cities • The Netherlands is an attractive, underpenetrated market for KFC with low c
Slide 12: Collins Foods: KFC strategic expansion
Collins Foods: KFC strategic expansion For personal use only • Total of 252 KFC restaurants • New restaurant build over the next 4 to 5 years: - Australia: 8 to 9 per year NETHERLANDS - Europe: 8 to 10 per year 16 GERMANY • We will continue to explore further acquisition opportunities that meet Coll
Slide 13: Sizzler: Sizzler Asia growing and Australia produced positive comps
For personal use only Sizzler Sizzler Asia growing and Australia produced positive comps Page 12
Slide 14: Sizzler: Asia growing and Australia produced positive comps
Sizzler: Asia growing and Australia produced positive comps For personal use only FY16 FY17 FY17 FY17 Change vs • Overall revenue down 10.5% Underlying Statutory Significant Underlying FY16 [1] items [2] Statutory • Comp sales in Australia of 0.4% Restaurants • Store count down 6 versus prior year d
Slide 15: Sizzler Asia continues to grow
Sizzler Asia continues to grow For personal use only • Sizzler Asia continues to grow through increased royalty revenue and store count • Royalty revenue up 4% • Thailand sales substantially impacted by the passing of the King and the subsequent mourning period • 5 new restaurants opened in Thailand
Slide 16: Financial overview
For personal use only Financial overview Page 15
Slide 17: Strong growth in net operating cash flow
Strong growth in net operating cash flow For personal use only • Net operating cash flow of $60.6m – an increase of $10.9m $m FY16 FY17 (21.9%) • Excluding the investment and financing activities associated Net operating cash flows before interest and tax 70.5 83.8 with the Germany and NSW/VIC acqui
Slide 18: Net leverage ratio is 1.59 after Germany acquisition
Net leverage ratio is 1.59 after Germany acquisition For personal use only • Net leverage ratio (NLR) at 1.59 Net Debt [1] / Net Leverage Ratio • Net leverage ratio covenant maximum of 2.75 $140 $133.1m 2.75 $122.8m • Net debt [1] up $20.6m to $133.1m, driven by $120 $112.5m 2.50 Germany acquisition
Slide 19: Balance sheet
Balance sheet For personal use only • Cash balance up $52.3m to $104.8m due to $m 1 May 2016 30 April 2017 proceeds from capital raising to partially fund the Netherlands acquisition of $53.9m Cash and equivalents 52.5 104.8 Total current assets 65.9 114.1 • Property, plant and equipment up $15.4m m
Slide 20: Priorities for FY18
Priorities for FY18 For personal use only • Growing the core KFC Australian business through: – transaction led same store sales growth – building 8 to 9 stores – remodel program with 20 major and 20 minor remodels – disciplined focus on operational improvement and margins • Integrating the newly ac
Slide 21: Questions
For personal use only Page 20 Questions
Slide 22: 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