STRONG KFC SALES BUCK UP COLLINS FOODS' PROFIT

Written on the 2 December 2015

STRONG KFC SALES BUCK UP COLLINS FOODS' PROFIT

COLLINS Foods (ASX:CKF) has bounced back in the black, after strong sales across its KFC stores delivered net profit of $14.3 million in the first half.

The food retailer posted a 33.6 per cent lift in profit in the six months ending October 18, compared to a loss of $22.9 million in the previous period.

Revenue lifted 5.1 per cent to $269.7 million in HY16, with EBITDA also up 19.8 per cent at $35.3 million.

The company's renewed focus on its KFC network is paying off, after scaling back Sizzler to a non-core business segment earlier this year.

Three new KFC restaurants opened in the first half, with two locations breaking ground in Western Australia. Another 16 stores have been remodelled to attract customers.

The Sizzler Australia business remains EBITDA positive, following the closure of three restaurants.

Collins Foods CEO Graham Maxwell says the top line growth and solid balance sheet puts the company in a strong position heading into the new year.

"We are very pleased with the overall performance of the Collins Foods business, particularly the ongoing strength of our KFC businesses in both Queensland and Western Australia Northern Territory," Maxwell says.

"They have achieved strong same store sales growth and continue to deliver improved margins resulting from our ongoing focus on operational performance.

"We continue to develop our network of KFC restaurants within the territories that we operate while at the same time investing in our existing restaurants to keep the look and feel contemporary and enticing for our customers."

Collins Foods' newest venture Snag Stand opened a new location on the Gold Coast, taking the total to five company-owned stores and one franchised. Two Snag Stands in Melbourne which didn't reflect 'future brand positioning' have been closed.

"Our focus remains on our three key objectives maximising operational performance, developing a solid growth platform and building further strength and resilience within the business," Maxwell says.

"We will continue to grow by providing excellent customer service, great products that our customers love, building new restaurants and remodelling selected existing restaurants."

The board has declared an interim dividend of 6 cents per share to be paid on December 23, up 20 per cent on the previous period.

 


Latest News

SIRTEX CEO DISMISSED FOLLOWING SHARE TRADING PROBE

SIRTEX Medical Ltd (ASX: SRX) has sacked its chief executive officer, Gilman Wong (pictured), following an investigat...

SANTA DELIVERS KOGAN A GIFT

KOGAN.COM (ASX: KGN) has exceeded its expectations and reported another strong quarter of trade.

The online retail...

FOUR WAYS YOU SHOULD PROTECT YOUR IT SYSTEMS FROM EXTREME WEATHER

SHANNON Overs, co-founder of onPlatinum ICT, sees it too often, perhaps half a dozen times per year businesses tha...

IOT GROUP ORDERS FIRST PRODUCTION OF ROVA DRONE

IOT Group (ASX:IOT) has ordered production of 40,000 units of the ROVA flying selfie drone from Chinese technologies ...

Related News

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

FEMALE ENTREPRENEURS GET SPRINGBOARD TO GROWTH

DESPITE the fast-growing number of women studying STEM subjects at school and university, women continue to be und...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter