Collins Foods Limited (ASX:CKF) Releases Half-Year Financial Results
Financial Results Summary
Collins Foods Limited (ASX:CKF) reported total revenue of $703.5 million for the half year ending 13 October 2024, reflecting a 1.2% increase from $695.2 million during the same period last year. However, the profit after tax attributable to members decreased by 52.1% to $24.1 million, down from $50.5 million in the previous corresponding period. This drop is largely attributed to the absence of profit from discontinued operations, which contributed $21.1 million in the prior year.
Dividend Declaration
The Board of Collins Foods has declared an interim fully franked dividend of 11.0 cents per share, payable on 6 January 2025. This compares to the previous interim dividend of 12.5 cents per share paid in December 2023. The record date for determining entitlements to the interim dividend is set for 9 December 2024.
Operational Performance
During the reporting period, the company operated a total of 285 KFC and 27 Taco Bell restaurants in Australia, alongside 58 KFC locations in the Netherlands, and 16 in Germany. Revenue from Australian KFC restaurants rose 2.7% to $536.8 million, although revenues in European segments experienced a decline due to economic pressures impacting consumers.
CEO Comments
Xavier Simonet, Managing Director and CEO of Collins Foods Limited, remarked, “Our revenue growth in the Australian market demonstrates our resilience. However, external economic factors continue to challenge our European operations. We remain committed to strategic investments to enhance our growth trajectory and shareholder value.”
Financial Position
As of 13 October 2024, Collins Foods maintained cash and cash equivalents of $88.6 million, an increase of $4.8 million since April 2024. Total indebtedness amounts to $247.3 million, and the company continues to have significant undrawn debt facilities to support ongoing operations and growth initiatives.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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