COL L INS F OODS L IMIT E D F Y17 HAL F -YE AR RE SUL - - PowerPoint PPT Presentation

F Y17 HAL F

• YE

AR RE SUL T S 30 Nove mbe r 2016

COL L INS F OODS L IMIT E D

Pa g e 1

HY17 saw c ontinue d gr

• wth in ke y financ ial me tr

ic s

[1] Adjuste d to e xc lude pre -ta x impa c t o f g a in o n dispo sa l o f pro pe rty, pla nt a nd e q uipme nt $0.6m a nd pre -ta x c o sts o f a c q uisitio ns e xpe nse d $1.8m (whic h inc lude s $1.0m sta mp duty a nd $0.3m le g a l, c o nsultanc y a nd se tup c o sts fo r the 13 K F C re sta ura nts in NSW/ Vic to ria b o rde r re g io n a nd $0.5m in re spe c t o f K F C re sta ura nts in Ge rma ny)

• Re ve nue up 4.7% to $282.5m
• Unde rlying E

BI T DA up 9.4% to $38.6m

• Unde rlying NPAT

up 17.2% to $16.8m

• Ne t de b t up to $124.6m b ut ne t

le ve ra g e ra tio he ld a t 1.54

• Ne t o pe ra ting c a sh flo w o f $26.3m up

$2.5m o n prio r ye a r

• Unde rlying E

PS up 15.4% to 17.8 c ps

• I

nte rim divide nd up 33.3% to 8.0 c ps fully fra nke d

$m HY16 Statutor y HY17 Statutor y F Y17 Signific ant Ite ms

[1]

F Y17 Unde r lying Change vs HY16 Statutor y R e ve nue

269.7 282.5 282.5 4.7% 

E BIT DA

35.3 37.4 1.2 38.6 9.4% 

E BIT

24.7 26.6 1.2 27.8 12.6% 

NPAT

14.3 15.4 1.3 16.8 17.2% 

Ne t De bt

117.4 124.6 124.6 $7.2m 

Ne t L e ve r age Ratio

1.62 1.54 1.54 0.08 

Ne t Ope r ating Cash F low

23.8 26.3 26.3 $2.5m 

E PS Basic (c e nts)

15.4 16.4 1.4 17.8 15.4% 

DPS (c e nts)

6.0 8.0 8.0 33.3% 

Pa g e 2

HY17 ope r ational snapshot

• Busine ss no w fully unde r Co llins

F

• o ds le a de rship
• Ne w me nu a nd b ra nd re fre sh

b e ing la unc he d b e fo re Christma s

• T
• ta l Sta nd c o unt o f 6

(inc luding 1 fra nc hise d Sta nd)

• T
• p line g ro wth o f 6.4% - sa me

sto re sa le s (SSS) o f (0.6%) with Q2 SSS re turning to po sitive g ro wth

• Ma rg ins he ld de spite fla t SSS
• Ope ne d 1 ne w re sta ura nt a nd

c o mple te d 13 ma jo r re mo de ls

• I

nte g ra tio n o f NSW/ Vic to ria a c q uisitio n pro g re ssing we ll

• Po st ha lf ye a r a nno unc e d

purc ha se o f 11 sto re s in Ge rma ny

• Sizzle r Austra lia sa le s b e tte r

tha n e xpe c te d with g o o d ma rg in c o ntro ls de live ring impro ve d E BI T DA o ve r prio r ye a r

• 1 Sizzle r re sta ura nt c lo se d,

b ring ing sto re c o unt to 21 a t the ha lf-ye a r

• Sizzle r Asia g ro wing e a rning s –

4 ne w sto re s o pe ne d with pla ns fo r a furthe r 2 in the se c o nd ha lf

Pa g e 3

KF C c ontinue s to gr

• w

Pa g e 4

• Re ve nue up 6.4% to $249.6m
• the a c q uisitio n o f 13 sto re s in the

NSW/ Vic to ria ma rke t c o ntrib ute d re ve nue o f $7.8m

• SSS we re (0.6%) vs HY16:
• ro lling o ve r hig h c o mps vs prio r

ye a r

• c o mps we re po sitive in Q2 o f

HY17

• 1 ne w re sta ura nt o pe ne d a nd

13 ma jo r re mo de ls c o mple te d

• Unde rlying E

BI T DA ma rg in o f 16.9% he ld up we ll g ive n so fte r SSS

KF C c ontinue s to gr

• w

[1] Unde rlying - e xc lude s g a in o n dispo sa l o f pro pe rty, pla nt a nd e q uipme nt o f $0.6m a nd se tup c o sts o f $0.1m fo r the 13 K F C re sta ura nts in NSW/ Vic to ria b o rde r re g io n

HY16 Statutor y HY17 Statutor y HY17 Signific ant ite ms [1] HY17 Unde r lying Change vs HY16 Statutor y Re staur ants

• Ha lf-ye a r e nd

174 190 190 16 

R e ve nue ($m)

234.6 249.6 249.6 6.4% 

• % SSS (Co llins F
• o ds)

5.2% (0.6%) (0.6%)

E BIT DA ($m)

39.9 42.8 (0.5) 42.3 6.0% 

• % ma rg in

17.0% 17.2% 16.9% 10 b ps 

E BIT ($m)

31.5 33.5 (0.5) 33.0 4.7% 

• % ma rg in

13.4% 13.4% 13.2% 22 b ps 

15.3% 17.0% 16.9%

10% 15% 20%

HY15 HY16 HY17 E BIT DA mar gin % $215.9 $234.6 $249.6

$0 $100 $200 $300 $400

HY15 HY16 HY17 Sale s $m

Pa g e 5

Innovation, value and ne w pr

• duc t offe r

ings ke e p dr iving gr

• wth

Cor e pr

• duc t innovation

Pulle d Po rk, Sa uc y Wing s, T e nde r Slide rs, a nd Pumpkin a nd F e ta T wiste r pro vide d the b ra nd with a ne w va ria tio n o n e xisting pro duc ts

Boxe d me als and family me als

Bo xe d a nd F a mily me a ls c o ntinue to pe rfo rm. Me g a Buc ke t a nd the One Bo x we re g o o d e xa mple s o f a b unda nt va lue

Gr e at value

Va lue o ffe rs suc h a s 24 Nug g e ts fo r $10 a nd $2 Slide rs c o ntinue to drive tra nsa c tio n g ro wth a nd de live r g o o d va lue

‘Ne w pro duc ts c o ntinue to e ngage c usto me rs whilst o ur value laye r c o ntinue s to de live r gre at re sults’

Pa g e 6

• HY17 c a pe x o f c irc a $7.7m

fo r K F C ne two rk de ve lo pme nt

• 1 ne w o pe ning
• 13 ma jo r re mo de ls
• 5 mino r re mo de ls
• HY17 c o re ma inte na nc e

a nd syste ms c a pita l c irc a $2.1m

• Ba la nc e o f ye a r a c tivity

e xpe c ta tio ns:

• 5 – 6 ne w o pe ning s
• 7 ma jo r re mo de ls
• 5 mino r re mo de ls

Continue d inve stme nt dr iving fur the r gr

• wth

Cabooltur e (QL D) Gr e e nslope s (QL D) South Pe r th (WA) Me lville (WA)

Pa g e 7

• Wo rld’ s 4th la rg e st e c o no my
• 82.5m c o nsume rs
• €71b o ut o f ho me fo o d ma rke t with the QSR se g me nt wo rth

a ppro xima te ly €23b *

• Curre ntly the re a re a ppro xima te ly 1,500 Mc Do na ld’ s* a nd o ve r 700

Burg e r K ing s* – e sta b lishe d a nd e ntre nc he d fa st fo o d industry

• K

F C la te sta rte r in QSR c a te g o ry with 142 re sta ura nts

• L

a st 4 ye a rs ha s se e n a ppro xima te ly a 50% inc re a se in K F C sto re c o unt

• K

F C unde r re pre se nte d in Ge rma ny c o mpa re d to Austra lia n ma rke t a nd lo c a l c o mpe titio n - c irc a 1 K F C:37,000 pe o ple (Austra lia ), c irc a 1 K F C:580,000 pe o ple (Ge rma ny)

• Pro vide s pla tfo rm to e xpa nd into wide r E

uro pe a n ma rke t

* so urc e : CRE ST 2016, npdg ro up De utsc hla nd Gmb H

E xpansion into Ge r many

500 1,000 1,500 2,000

Mc D BK SUB KF C Compe titor – Re staur ant #’s*

1,000 2,000 3,000 4,000

Mc D BK SUB KF C Compe titor – Re ve nue €m*

50 100 150 200

2011 2012 2013 2014 2015 2016 KF C Re staur ant E xpansion

Pa g e 8

• Ac q uisitio n o f 11 K

F C re sta ura nts lo c a te d in Ge rma ny – 6 in Dusse ldo rf re g io n; 5 in Stuttg a rt re g io n – fo r €12.7m

• On a tra iling b a sis sa le s we re €22.5m
• I

mme dia te ly E PS a c c re tive (pre -syne rg ie s)

• F

ra g me nte d fra nc hise c o mmunity with no do mina nt pla ye r

• Sig nific a nt sto re g ro wth o ppo rtunity o ve r me dium

to lo ng te rm

• Sho rt te rm pla n to o pe n 4 to 5 re sta ura nts pe r ye a r
• ve r the ne xt 2 ye a rs inc re a sing to 10 re sta ura nts

pe r ye a r in the fo llo wing ye a rs

Ac quisition of 11 KF C r e staur ants in Ge r many

Pa g e 9

Sizzle r de live r e d impr

• ve d

E BIT DA r e sults

Pa g e 10

• Ove ra ll re ve nue do wn 11.1%, with c o mp sa le s in

Austra lia o f (0.6%)

• Sto re c o unt do wn 2 ve rsus prio r ye a r due to

c lo sure s

• Ong o ing fo c us o n c o st ma na g e me nt ha s

e na b le d ma rg ins to b e he ld

• Unde rlying E

BI T DA a t $2.7m fo r the ha lf ye a r

• Bo th Sizzle r Austra lia a nd Sizzle r Asia E

BI T DA up o n prio r ye a r

• No furthe r g ro wth c a pita l ha s b e e n inve ste d

Sizzle r de live r e d impr

• ve d E

BIT DA r e sults

[1] Sizzle r Austra lia o nly (e xc lude s Sizzle r Asia ) [2] Inc lude s Sizzle r Austra lia a nd Sizzle r Asia

HY16 Statutor y HY17 Statutor y Change vs HY16 Statutor y R e staur ants

• Pe rio d e nd [1]

23 21 2 

R e ve nue [2] ($m)

35.1 31.2 11.1% 

• % SSS[1]

(12.0%) (0.6%)

E BIT DA [2] ($m)

2.1 2.7 27.3% 

• % ma rg in

6.0% 8.6% 261 b ps 

E BIT [2] ($m)

1.2 2.0 67.9% 

• % ma rg in

3.5% 6.5% 308 b ps 

Pa g e 11

• Sizzle r Asia c o ntinue s to

g ro w thro ug h inc re a se d ro ya lty re ve nue a nd sto re c o unt

• Ro ya lty re ve nue up 15.0%
• 2 ne w re sta ura nts o pe ne d

in T ha ila nd a nd 2 ne w re sta ura nts o pe ne d in China during HY17

• 2 furthe r ne w re sta ura nt
• pe ning s a re pla nne d

fo r F Y17

Sizzle r Asia c ontinue s to gr

• w

Pa g e 12

F inanc ial ove r vie w

Pa g e 13

• Ne t o pe ra ting c a sh flo w inc re a se d b y $2.5m
• I

nc o me ta x pa id inc re a se d $1.2m due to a n inc re a se in re ve nue a nd the ta x insta lme nt ra te whe n c o mpa re d to prio r ye a r

• Ca pe x c a sh spe nd o f $15.5m
• Ne w sto re a nd re mo de ls c irc a $10m
• Pa yme nt o f invo ic e s a c c rue d a t e nd o f

F Y16 c irc a $5m

• Ca sh e le me nt o f 13 K

F C re sta ura nt a c q uisitio n in NSW/ Vic b o rde r re g io n wa s $15.3m (tra nsa c tio n c o sts o f c irc a $1.2m inc lude d within o pe ra ting c a sh flo ws)

• Stro ng c a sh flo ws e na b ling a n inte rim F

Y17 fully fra nke d divide nd o f 8.0 c ps, up 33.3%

• n prio r ye a r

Ne t c ash flow pr e ac quisition c osts r e mains positive

[1] Ca pe x re fle c ts a c tua l Ca pital c ash spe nd.

$m HY16 HY17 Ne t ope r ating c ash flows be for e inte r e st and tax 34.7 38.3

Ne t inte re st pa id (3.9) (3.9) I nc o me ta x pa id (6.9) (8.1)

Ne t ope r ating c ash flows 23.8 26.3

Pa yme nt fo r fra nc hise rig hts (0.2) (0.1) Pa yme nt fo r a c q uisitio n o f sub sidia rie s, ne t o f c a sh a c q uire d 0.0 (15.0) Ca pe x

[1]

(11.6) (15.5)

Ne t c ash flow fr

• m inve sting

(11.7) (30.7) Ne t c ash flow fr

• m financ ing

(7.0) (7.6) Ne t for e ign e xc hange move me nt

0.3 0.0

NE T CASH F L OW 5.4 (12.0)

Pa g e 14

$122.8m $112.5m $124.6m

1.83 1.52 1.54 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 $100 $105 $110 $115 $120 $125 $130 $135

F Y15 F Y16 HY17

Ne t L e ve r age Ratio Ne t De bt $m

Ne t De bt / Ne t L e ve r age Ratio

• Ne t le ve ra g e ra tio re ma ins a t 1.54

fro m F Y16

• Ne t le ve ra g e ra tio c o ve na nt

ma ximum o f 2.75

• Ne t de b t up $12.1m to $124.6m,

drive n b y c o sts o f a c q uisitio n o f 13 K F C re sta ura nts in NSW/ Vic to ria b o rde r re g io n o f $15.3m

• Ba la nc e She e t re ma ins stro ng

Ne t le ve r age r atio is 1.54 afte r ac quisition of 13 ne w KF C r e staur ants in NSW/ Vic tor ia bor de r r e gion

Pa g e 15

• De c re a se in c a sh o f $12.1m due to

a c q uisitio n o f 13 K F C re sta ura nts

• Pro pe rty, pla nt a nd e q uipme nt up $5.1m

ma inly due to ne w re sta ura nt a c q uisitio ns a nd re mo de ls o ffse t b y re sta ura nt de pre c ia tio n

• I

nc re a se in no n-c urre nt a sse ts la rg e ly due to a n inc re a se in g o o dwill o f $23.0m re sulting fro m the a c q uisitio n o f ne w re sta ura nts

• T
• ta l c urre nt lia b ilitie s do wn $4.7m due to

lo we r tra de pa ya b le s

Balanc e she e t

[1] Ne t o f c a pitalise d c o sts $0.7m (F Y16: $0.8m)

$m 1 May 2016 16 Oc tobe r 2016

Ca sh a nd e q uiva le nts 52.5 40.4

T

• tal c ur

r e nt asse ts 65.9 49.5

Pro pe rty, pla nt a nd e q uipme nt 88.0 93.1

T

• tal non-c ur

r e nt asse ts 362.4 392.4 T

• tal asse ts

428.3 441.9

De b t

[1]

164.2 164.3

T

• tal c ur

r e nt liabilitie s 68.4 63.7 T

• tal non-c ur

r e nt liabilitie s 170.2 170.5 T

• tal liabilitie s

238.6 234.1 NE T ASSE T S 189.7 207.7

Pa g e 16

• Gro wing the K

F C Austra lia n b usine ss thro ug h:

• e xisting sto re sa le s g ro wth
• b uilding 5 – 6 ne w sto re s
• c o ntinuing re mo de l pro g ra m with 7 ma jo r a nd 5 mino r re mo de ls
• e xplo ring furthe r lo c a l a c q uisitio n o ppo rtunitie s tha t me e t Co llins F
• o ds

stra te g ic c rite ria

• Co ntinue d disc ipline d fo c us o n o pe ra tio na l impro ve me nt a nd K

F C ma rg ins

• E

sta b lish lo c a l suppo rt c e ntre fo r 11 K F C sto re s in Ge rma ny a nd b uild pla tfo rm fo r furthe r g ro wth, o pe ning a n a dditio na l 2 re sta ura nts in the ne xt 6 mo nths

• L

a unc h ne w me nu a nd b ra nding fo r Sna g Sta nd

Pr ior itie s for the r e mainde r

• f F

Y17

Pa g e 17

Que stions

Pa g e 18 T his pre se nta tio n c o nta ins fo rwa rd lo o king sta te me nts whic h ma y b e sub je c t to sig nific a nt unc e rta intie s b e yo nd CK F ’ s c o ntro l. No re pre se nta tio n is ma de a s to the a c c ura c y o r re lia b ility o f fo rwa rd lo o king sta te me nts o r the a ssumptio ns o n whic h the y a re b a se d. Circ umsta nc e s ma y c ha ng e a nd the fo rwa rd lo o king sta te me nts ma y b e c o me o utda te d a s a re sult so yo u a re c a utio ne d no t to pla c e undue re lia nc e o n a ny fo rwa rd lo o king sta te me nt. T he Co mpa ny is o f a kind re fe rre d to in Cla ss Orde r 98/ 100, issue d b y the Austra lia n Se c uritie s a nd I nve stme nts Co mmissio n, re la ting to the ‘ ro unding o ff’ o f a mo unts in the pre se nta tio n. Amo unts in the pre se nta tio n ha ve b e e n ro unde d o ff in a c c o rda nc e with tha t Cla ss Orde r to the ne a re st tho usa nd do lla rs, o r in c e rta in c a se s, to the ne a re st do lla r. Any disc re pa nc ie s b e twe e n to tals, sums o f c o mpo ne nts a nd diffe re nc e s in ta b le s a nd pe rc e nta g e va ria nc e s c a lc ula te d c o nta ine d in this pre se nta tio n a re due to ro unding .

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