Collins Foods Limited ( (CLLFF) ) has released its Q2 earnings. Here is a breakdown of the information Collins Foods Limited presented to its investors.
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Collins Foods Limited is a prominent player in the quick service restaurant industry, operating KFC and Taco Bell franchises across Australia and Europe. The company is the largest franchisee of KFC in Australia, with a significant presence in the Netherlands and Germany as well.
In its latest financial report, Collins Foods Limited reported a revenue of $750.3 million for the period, marking a 6.6% increase from the previous year. The company’s EBITDA rose by 11% to $113.9 million, and the underlying net profit after tax increased by 29.5% to $30.8 million. The Australian KFC segment contributed significantly to this growth, while the European KFC segment saw a substantial revenue increase of 14.6%.
The company’s financial performance was bolstered by strong cash flows, despite a decrease in net cash flow from operations due to higher tax payments. Collins Foods invested heavily in expanding its store network and technology, with a net cash outflow of $26.9 million in investing activities. The company also reduced its total indebtedness by $18.3 million, maintaining a robust balance sheet with $101.6 million in cash and cash equivalents.
Looking ahead, Collins Foods Limited remains committed to reinvesting in its business and rewarding shareholders with dividends, as evidenced by the declaration of a fully franked interim dividend of 13.0 cents per share. The management’s outlook suggests a continued focus on growth and operational efficiency, positioning the company well for future success in the competitive quick service restaurant market.