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COLLINS FOODS LIMITED ACN 151 420 781
INTERIM FINANCIAL REPORT
For the reporting period ended 17 October 2021
Authorised for release by the Board
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THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY
Collins Foods Limited ACN 151 420 781 | Interim Financial Report - for the reporting period ended 17 October 2021
APPENDIX 4D
For personal use only
Half-year Financial Report
for the Financial Half-year ended 17 October 2021
Reporting period: | 24 weeks to 17 October 2021 |
Previous corresponding period: | 24 weeks to 18 October 2020 |
RESULTS FOR ANNOUNCEMENT TO THE MARKET
REVENUE AND NET PROFIT
Percentage | Period ended | Period ended | |
Change | 17 Oct 2021 | 18 Oct 2020 (1) | |
% | $000 | $000 | |
Revenue from ordinary activities | Up 8.5% | 534,246 | 492,271 |
Profit from ordinary activities after tax attributable to members | Up 26.1% | 26,392 | 20,923 |
Loss from discontinued operations after tax | Down 100.0% | - | (4,446) |
Net profit for the period attributable to members | Up 60.2% | 26,392 | 16,477 |
- Comparative figures have been restated to reclassify Sizzler Australia out of ordinary activities and into discontinued operations. Further details of this can be found in note E of the Interim Financial Report
BRIEF EXPLANATION OF THE FIGURES REPORTED ABOVE
This report is based on the consolidated interim financial statements which have been reviewed by the auditor. The review report, which was unqualified, is included within the Company's Interim Financial Report for the 24 weeks ending 17 October 2021 which accompanies this Appendix 4D.
For a brief explanation of the figures above please refer to the Results Announcement for the period ended 17 October 2021 and the Director's Report, which forms part of the Interim Financial Report.
DIVIDENDS
Amount per | Franked amount | |
Security | per security | |
Interim dividend for reporting period: | 12.0 cents | 12.0 cents |
- Payable 22 December 2021
The record date for determining entitlements to the interim dividend:
- 7 December 2021
Interim dividend for previous corresponding period (18 October 2020) | 10.5 cents | 10.5 cents | |
• | Paid 18 December 2020 | ||
Final dividend at year end (2 May 2021) | 12.5 cents | 12.5 cents | |
• | Paid 22 July 2021 |
The interim fully franked dividend of 12.0 cents per share was declared by the Board of Directors on 30 November 2021. In accordance with accounting standards, as the dividend was not declared prior to the reporting period end, no provision has been taken up for this dividend in the financial statements for the reporting period ended 17 October 2021.
NET TANGIBLE ASSETS PER SECURITY
Current Reporting | Previous Corresponding | |
Period | Period (1) | |
Net tangible asset backing per ordinary security | $(0.40) | $(0.46) |
- Comparative figures have been restated to due to an adjustment to the accounting for acquisitions in prior period. Refer to note A3(B) for further details.
DETAILS OF ASSOCIATES
Joint venture entities and the percentage holding thereof are as follows:
Entity | Percentage Holding |
Sizzler China Pte Ltd | 50% |
Collins Foods Limited ACN 151 420 781 | Appendix 4D - Interim Financial Report - for the reporting period ended 17 October 2021
For personal use only
CONTENTS | |
Auditor's independence declaration...................................................................................................................................................... | 3 |
Consolidated Income Statement............................................................................................................................................................. | 4 |
Consolidated Statement of Comprehensive Income............................................................................................................................ | 5 |
Consolidated Balance Sheet.................................................................................................................................................................... | 6 |
Consolidated Statement of Cash Flows .................................................................................................................................................. | 7 |
Consolidated Statement of Changes in Equity ...................................................................................................................................... | 8 |
Notes to the Consolidated Financial Statements................................................................................................................................... | 9 |
A/ Financial overview ................................................................................................................................................................................ | 9 |
A1/ Segment information ................................................................................................................................................................ | 9 |
A2/ Revenue ................................................................................................................................................................................... | 11 |
A3/ Business combinations ............................................................................................................................................................ | 12 |
B/ Cash management ............................................................................................................................................................................. | 15 |
B1/ Borrowings................................................................................................................................................................................. | 15 |
B2/ Dividends .................................................................................................................................................................................. | 15 |
C/ Recognised fair value measurements.............................................................................................................................................. | 16 |
D/ Contributed equity.............................................................................................................................................................................. | 17 |
E/ Discontinued operations ..................................................................................................................................................................... | 18 |
F/ Other information................................................................................................................................................................................. | 19 |
F1/ Property, plant and equipment.............................................................................................................................................. | 19 |
F2/ Intangible assets ....................................................................................................................................................................... | 20 |
F3/ Income tax ................................................................................................................................................................................ | 22 |
F4/ Commitments ........................................................................................................................................................................... | 23 |
G/ Basis of preparation of half-year report ........................................................................................................................................... | 24 |
G1/ Basis of preparation of half-year report ............................................................................................................................... | 24 |
G2/ Changes in accounting policies ........................................................................................................................................... | 24 |
Directors' Declaration .............................................................................................................................................................................. | 26 |
Independent Auditor's Review Report .................................................................................................................................................. | 27 |
Collins Foods Limited ACN 151 420 781 | Interim Financial Report - for the reporting period ended 17 October 2021
For personal use only
DIRECTORS' REPORT
Your Directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Collins Foods Limited (the Company) and the entities it controlled at the end of, or during the twenty-four week period ended 17 October 2021, which the Directors consider to be the first half (half-year) of the Group's financial year to 1 May 2022.
Directors
The following persons were Directors of the Company during the half-year or up to the date of this report:
Name | Date of appointment |
Robert Kaye SC | 7 October 2014 |
Christine Holman | 12 December 2019 |
Newman Manion (1) | 10 June 2011 |
Bronwyn Morris AM | 10 June 2011 |
Drew O'Malley | 29 June 2021 |
Kevin Perkins | 15 July 2011 |
Russell Tate | 10 June 2011 |
(1) (Newman Manion retired from the Board of Directors on 27 August 2021.
Operating and financial review
GROUP OVERVIEW
The Group's business is the operation, management and administration of restaurants, currently comprising three restaurant brands: KFC, Taco Bell and Sizzler. The KFC and Taco Bell brands are two of the world's largest restaurant chains and are owned globally by Yum!. In Australia, the Group is the largest franchisee of KFC restaurants.
At the end of the period, the Group operated 254 franchised KFC restaurants in Australia, 16 franchised KFC restaurants in Germany, 35 franchised restaurants in the Netherlands and 17 franchised Taco Bell restaurants in Australia, which all compete in the quick service restaurant market. The Group is also a franchisor of the Sizzler brand in South East Asia, with 64 franchised restaurants in Thailand and Japan.
During the half-year period to 17 October 2021, COVID-19 continued to have an impact on the operations and financial performance of our business, in particular in-line Taco Bell restaurants in Victoria, KFC Australia foodcourts, and KFC Europe inline restaurants. The Group has worked closely with various authorities and our franchisor, Yum! Brands to ensure we implemented all measures to safeguard our employees and customers at each and every stage.
REVENUE AND EXPENSES
Revenues for the half-year were $534.2 million, up 8.5% compared to the previous corresponding period. Compared to the previous corresponding period, revenues in the domestic KFC restaurants segment were $433.7 million, up 4.4%, revenues in the Europe KFC restaurants segment were $84.7 million, up 31.7% and Taco Bell revenues were $14.8 million, up 33.0%.
The growth in total revenues combined with disciplined business controls resulted in an underlying EBITDA, post AASB 16, for the half-year of $94.9 million, up 13.1% compared to the previous corresponding period.
NET PROFIT
The statutory profit from continuing operations was $26.4 million for the half-year. This was an increase of $5.5 million, predominantly driven by revenue growth. This represents basic earnings from continuing operations per share of 22.62 cents compared to the previous corresponding period basic earnings per share of 17.94 cents.
CASH FLOW AND BALANCE SHEET
The net cash flow from operations reflected in the statutory Consolidated Statement of Cash Flows (including AASB 16) of $72.3 million is $5.9 million lower than the prior comparable period.
Cash flow from investing activities was a net outflow of $52.2 million reflecting investment in the existing network and the building of new restaurants and acquisitions in the Netherlands.
Statutory cash flow from financing activities was a net outflow of $26.5 million representing inflows of $14.1 million to fund the Netherlands acquisitions, outflows related to leases and the Group's dividend payment.
Overall cash and cash equivalents as at 17 October 2021 was $90.0 million, representing a $5.7 million decrease on the prior reporting period.
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Collins Foods Limited published this content on 29 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 November 2021 23:00:04 UTC.