Collins Foods half-year financial performance

Collins Foods (ASX:CKF) has announced its half-year results for the period ending 13 October 2024. The company reported a 1.2% increase in revenue to $703.5 million. However, underlying EBITDA decreased by 6.6%, and underlying NPAT fell by 23.8%. Despite these challenges, Collins Foods declared an 11.0 cents per share interim dividend.

Collins Foods strategic outlook

Collins Foods Limited has faced a challenging consumer environment, which has affected its financial performance for the half-year ending 13 October 2024. While revenues saw a slight increase, profitability declined due to cost pressures. The company continues to focus on strategic initiatives such as menu innovation and increasing digital sales. Operational highlights include growth in KFC Australia's revenue and a commitment to new restaurant development. Despite current market conditions, Collins Foods aims to maintain strong brand metrics and explore M&A opportunities to drive future growth. The company anticipates FY25 EBITDA margins to be between 14.2% and 14.7%, with a focus on operational excellence and consumer confidence recovery.

Executive insights from Collins Foods

Despite the challenges, Collins Foods maintains a strong balance sheet, with net debt reduced to $158.9 million and a fully franked interim dividend declared at 11.0 cents per share.