Collins Foods half-year revenue hits record $750m
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The news: Collins Foods has posted a 6.6% lift in revenue in the first half of FY26, hitting a record $750.3 million amid growth in KFC Australia and Europe.
The numbers: KFC Australia revenue lifted 5% to $563.8 million and KFC Europe revenue lifted 14.6% to $162.9 million. Meanwhile, Taco Bell revenue fell by 3.9% to $23.6 million.
Net profit after tax lifted 12.7% year on year to $27.2 million, which is inclusive of a $3.1 million impairment from previously impaired restaurants and a $1.3 million provision top-up for potential wage underpayments.
Underlying EBITDA meanwhile lifted 11% to $113.9 million reflecting total and same store sales growth and productivity gains.
Collins Foods also declared a fully franked interim dividend of 13 cents per share, up from the 11 cents per share declared in the previous comparable period.
The context: Full-year underlying NPAT year-on-year percentage growth guidance was lifted to the mid to high-teens from the previous expectation of low to mid-teens.
Collins Foods managing director Xavier Simonet said the company delivered its operational priorities of same store sales growth in Australia and Europe. This came in at 2.3% and 1.4% respectively.
Simonet also flagged network expansion in Australia and Europe and said Collins’ teams “delivered strong performance against key priorities in an environment where consumers are still grappling with cost of living challenges”.
What they said: “The KFC brand strengthened underpinned by improvements in brand health, compelling marketing campaigns, product innovation, and investments in everyday value initiatives,” Simonet said.
“Our business again generated very strong cash flows, which, combined with disciplined capital deployment, ensures we remain in a very strong financial position with the flexibility and capacity to invest in future growth. This was supported by the successful refinancing of Group debt facilities in September.”
The source: ASX
