Collins Foods says it will continue to focus on improving customer engagement to increase sales, lifting labour productivity, and managing costs to improve its margin, after reporting improved sales last year.
The company reported a 2.1 per cent increase in group revenue to $1.5 billion and an underlying EBITDA down 0.6 per cent to $228.5 million. Underlying net profit after tax dropped 14.8 per cent to $51.1 million.
Following a strategic review, the company wrote down the value of 16 restaurants in the Netherlands, leading to a non-cash impairment of $35 million.
Australia remains the group’s most profitable market, with KFC Australia generating nearly $1.2 billion in revenue, a 3 per cent year-over-year increase. Digital sales accounted for 34.2 per cent of its revenue, up from 29.4 per cent last year.
The company opened 10 new restaurants, remodelled 40, and installed kiosks in another 106 restaurants in Australia.
In Europe, revenue was down slightly at $312.3 million, reflecting negative consumer sentiment, with same-store sales declining 2.5 per cent in the Netherlands and 3.3 per cent in Germany.
For the next fiscal year, the company will target an underlying net profit after tax growth in the low to mid-teens on a percentage basis.
This article was first published on sibling website Inside Retail.
