KFC Australia leads growth for Collins Foods in FY21
Same store sales growth was 12.9%.
Collins Foods reported higher profits for its latest financial year, as its KFC Australia business remained a “standout performer” despite COVID-19 volatility.
In a release sent to the ASX, the company said its underlying net profit after tax from continuing operations was up 18.2% to $56.9 million.
For the 12 months ended May 2, Collins Foods saw a 12.4% increase in revenue to $1.07 billion, largely driven by KFC stores in Australia, which reported a 13.8% increase in revenue to $900.4 million due to new store openings and 12.9% same store sales growth.
Taco Bell supported with a 57.4% jump in revenue to $28 million, offsetting a 0.6% same store sales decline from Collins’ KFC Europe business.
The listed company reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations (pre AASB 16) of $136.3 million, up 12.4% compared to the same period last year.
“As consumers turned to trusted brands and sought convenience, we responded with powerful brand marketing, combined with exciting initiatives in digital and an expansion of our delivery network. Digital and delivery continue to be pillars of our growth strategy for the KFC brand,” said Collins Foods’ CEO Drew O’Malley, who was also appointed to the board as its managing director.
The business has signed an agreement to build a minimum of 66 new KFC restaurants by 2028 in Australia. In Europe, it expects up to four new builds per year in the Netherlands.
Taco Bell, meanwhile, is said to be “on track for accelerated development” in FY 2022, with 9 to 12 new restaurants planned to be opened in the year ahead.
