Sales revenue down for major Australian fast food group
Recently listed Australian fast food operator Collins Foods has announced a 1.2% drop in sales revenue for the first half of the 2011/12 financial year, up to 16 October 2011.
Collins Foods, which was listed the Australian Securities Exchange in August 2011, operates 119 KFC outlets and 26 Sizzler restaurants, mostly in Queensland.
Shares in the company fell by 24 per cent following the announcement, made on Wednesday 2 November 2011. The company reported an expected loss in Net Profit After Tax of approximately A$0.5 Million for the first half of the 2011/12 financial year.
Commenting on the results, Collins Foods’ CEO Kevin Perkins said that fragile consumer confidence and a highly competitive restaurant industry environment had resulted in reduced customer frequency in both the KFS and Sizzler segments of the business.
Mr Perkins said that factors like current consumer uncertainty and sales volatility make it difficult to assess trading levels for the remainder of the year. However, he also said that the board confirms its target dividend payout ratio of at least 50 per cent of Net Profit After Tax in respect of the full year.
Collins Foods pointed out that the half year figures are subject to a final review by the company’s auditors.