Collins Foods Limited: Trading Update

Collins Foods Limited (ASX: CKF) unveiled its financial outcomes for the half-year concluded on October 15, 2023 (HY24), marking a period of robust revenue, same store sales (SSS), and earnings growth despite challenging market conditions. During this span, the company experienced a notable 14.3% surge in revenue from continuing operations, reaching AU$696.5 million compared to AU$609.4 million in HY23, driven by robust expansion across all business segments. Notably, underlying EBITDA from continuing operations witnessed a substantial uptick of 16.7%, ascending to AU$109.9 million from AU$94.2 million in HY23. Similarly, the underlying NPAT from continuing operations saw a significant increase of 28.7%, climbing to AU$31.2 million from AU$24.2 million in HY23.

The company's net debt reduced to AU$173.0 million (from AU$191.1 million in HY23). To reward its stakeholders, Collins Foods announced a fully franked interim dividend of 12.5 cents per ordinary share, up from 12.0 cents in HY23. Additionally, the company reported a statutory NPAT of AU$50.5 million, which includes a gain of AU$20.2 million from the sale of Sizzler Asia in HY24, a considerable improvement compared to AU$11.0 million in HY23.

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