Collins Foods net profits after tax drops to $8.8m for FY2025

A final dividend of 15 cents per share was declared, bringing the total FY2025 dividend to 26 cents per share.

Collin Foods statutory net profit after tax (NPAT) was down by 88.5% to $8.8m for the year ending 27 April 2025 (FY2025), primarily due to $40.8m in restaurant impairments and a $3.2m provision for potential wage underpayments. 

The group said last year's $76.7m gain was boosted by a $20.2m gain from the sale of Sizzler Asia, making the year-on-year comparison less favourable.

Revenue from continuing operations increased by 2.1% to $1.52b, with growth in Australia partially offset by softness in Europe. Performance reflected difficult, albeit improving, conditions in Australia and Europe.

Going by business, Collins Foods reported that KFC Australia revenues were up by 3% to $1.15b, driven by new store openings, higher digital sales, and product initiatives. Digital channels made up 34.2% of revenue, driven by increased app adoption and greater kiosk availability.

The company opened 10 new KFC locations and closed one, ending the year with 288 stores. It also refurbished 40 restaurants, including eight high-capacity formats, and expanded kiosk availability to more than 100 locations.

A further seven to 10 new restaurants are expected to be added to the network in FY26, and the company aims to deliver 28 to 30 new restaurants by 2028.

Meanwhile, the KFC Europe business revenue dipped 0.4% to $312.3m. Underlying EBITDA declined by 7.5% to $39.4m at a margin of 12.6%.

Taco Bell’s revenue slipped to $53m as consumer spending weakened. Digital sales accounted for almost a third of all sales, in line with the same period last year.

EBITDA at a restaurant level was $1.7m, reflecting lower sales, cost inflation, and higher marketing investment.

In its previous ASX release, Collins Foods shared plans to exit the Taco Bell business.

"Easing cost-of-living pressures provide a supportive backdrop for growth, while deflation in Australian input costs, particularly chicken and potatoes, and efficiency gains will assist in driving a higher margin. We're doubling down on growth with further investment in network expansion and modernisation in Australia, elevating the customer experience to support brand health, which is key to lifting sales," Xavier Simonet, Managing Director and CEO of Collins Foods said.

A fully franked final dividend of 15 cents per share was declared, bringing the total FY2025 dividend to 26.0 cents per share.