Collins Foods has announced an 88.5% plunge in statutory net profit after tax (NPAT) to A$8.8 million for the 2025 financial year (FY25).
The owner of KFC franchises in Australia and Europe and Taco Bell in Australia said this included $40.8 million in restaurant impairments and a $3.2 million provision for potential wage underpayments.
The statutory NPAT of $76.7 million in FY24 benefitted from a $20.2 million gain from the Sizzler Asia sale.
The company announced a fully franked final dividend of 15 cents per ordinary share, making 26.0 cents for the year ended 27 April 2025, versus 28 cents a year earlier.
Revenue from continuing operations grew 2.1% to a record $1.5195 billion with growth in Australia partially offset by softness in Europe, reflecting difficult but improving conditions in both regions.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations were flat at $228.5 million despite soft economic conditions and cost inflation, especially in the first half.
Underlying EBIT dropped 5.7% to $117.1 million and underlying NPAT from continuing operations fell 14.8% to $51.1 million.
Managing Director and CEO Xavier Simonet said Collins Foods sharpened its priorities in FY25 to focus on same store sales growth and profitable network expansion in Australia and Europe.
“Our teams delivered a resilient performance this year in a challenging consumer environment. While trading conditions were subdued, particularly in the first half, the strength of the KFC brand held firm,” he said in an ASX announcement.
As to the outlook, Collins Foods said it was aiming for year-on-year group underlying NPAT percentage growth in the low to mid-teens.
Collins Foods shares (ASX: CKF) closed four cents higher at $7.26 on Monday, capitalising the company at $855.8 million.
