Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Collins Foods (ASX:CKF) Reports HY20 Profit Of $20.4 Million

Collins Foods (ASX: CKF) has reported its half year result to 13 October 2019, sending the share price up 3.5%.

Collins Foods is a large fast food franchisee that operates KFC outlets in Australia, Germany and the Netherlands. It receives royalty revenue from Sizzler Asia outlets and Collins Foods has started to build Taco Bells in Australia. A fun fact is that Collins Foods’ ticker of CKF is an anagram of KFC, its main source of earnings.

Collins Foods’ HY20 Result

Collins Foods grew revenue by 9.2% to $448.8 million. KFC Australia same store sales (SSS) grew by 4.9% with all states showing positive SSS growth. KFC Europe SSS grew by 0.1% with “positive” results in Germany driven by value initiatives and a national brand refresh.

KFC Australia’s underlying EBITDA margin (click here to learn what EBITDA means), before AASB 16 changes, improved to 17.5% – up from 17% last year. This was driven by positive economies of scale from SSS growth and cost control.

Statutory EBITDA (pre AASB 16) grew 9.7% to $58.8 million and underlying EBITDA (pre AASB 16) increased 7.4% to $57.7 million.

Statutory net profit (pre AASB 16) increased 12.1% to $24.1 million and underlying net profit (pre AASB 16) rose 9.1% to $23.9 million. However, reported net profit fell 5% to $20.4 million when including the new accounting standards.

The company said that Collins Foods continues to roll out Taco Bells. The fifth restaurant was opened during the first half and another two were opened after the end of the half year period, bringing the total number in Queensland to seven. The company plans to open its first two restaurants in Victoria. It’s targeting 20 new Taco Bell builds in the 2020 calendar year.

Collins Foods also reported that its Sizzler Asia royalty revenue increased by 17.9% with a total of 76 restaurants now operating in Asia.

Collins Foods Dividend

The Board decided to increase the interim dividend by 5.6% to 9.5 cents per share.

Outlook

The company expects to continue up new stores across its various markets whilst improving its transaction growth and sales.

[ls_content_block id=”18457″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content