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 company that manages and operates quick service restaurants, primarily KFC and Taco Bell, across Australia and Europe. It is the largest franchisee of KFC in Australia.
In its latest earnings report for the half-year ending October 13, 2024, Collins Foods reported a modest increase in revenue by 1.2% to $703.5 million compared to the previous year. However, the company’s net profit saw a significant decline, dropping 52.1% to $24.1 million, attributed to a decrease in profit from discontinued operations.
The earnings report highlighted that while KFC Australia experienced a revenue growth of 2.7%, the European segment faced challenges with a 3.4% decline. The company’s EBITDA decreased by 6.6% due to inflationary pressures affecting labor and operational costs. Despite these challenges, Collins Foods declared an interim dividend of 11.0 cents per share, reflecting continued shareholder returns.
Looking forward, Collins Foods remains focused on reinvestment in its business, with investments in new restaurants and technology aimed at enhancing operational efficiency and sustainability. The management is cautious but optimistic, navigating through market challenges while maintaining a strong financial position.
