Restaurant Brands lifts FY profit
Restaurant Brands New Zealand increased annual profit 37 per cent after the fast-food operator benefited from its expanded business in Australia and Hawaii.
17 April 2018
Restaurant Brands New Zealand increased annual profit 37 per cent after the fast-food operator lifted earnings in its local market and benefited from its expanded business through Australia and Hawaii.
The Auckland-based company said net profit rose to $35.5 million, or 28.83 cents per share, in the 52 weeks ended February 26, from $26m, or 24.08 cents, a year earlier.
Sales jumped 49 per cent to $740.8m.
Full-year profit excluding non-trading items lifted 32 per cent to $40.4m, in line with the company's forecast for about $40m.
The company said on Tuesday that profit on that measure would lift at least 10 per cent next year.
Restaurant Brands holds the rights to the KFC, Pizza Hut, Starbucks Coffee and Carl's Jr brands in New Zealand and has expanded its business to KFC in Australia and Taco Bell and Pizza Hut in Hawaii, with almost half of sales generated overseas in the latest year.
On Tuesday, the company detailed its plans for future growth, including expanding its KFC business in New Zealand and Australia and potentially acquiring KFC operations in Hawaii and the US.
It also plans to further develop its Pizza Hut business in New Zealand and Hawaii and may introduce the Taco Bell business to New Zealand and Australia, expand the business in Hawaii and potentially acquire Taco Bell operations in the US.
"The full effects of two major acquisitions is evident in this year's financial results," Restaurant Brands said.
"From a sound, established position in both the Australian and US (Hawaii) markets the company now has significant scope to expand further in both these geographies through acquisition, store refurbishments and organic growth.
"At the same time, organic growth opportunities within the New Zealand business will be pursued."
The expansion has seen the company's bank debt lift to $166.8m at the end of the financial year, from $46.5m at the end of the previous year.
At balance date, it had bank debt facilities of $253m in place.
In September last year, Restaurant Brands dual-listed on the Australian Securities Exchange to enable it to access additional pools of capital that may be needed to fund future acquisitions.
The company will pay a final dividend of 18 cents per share on June 22, taking its annual dividend to 28 cents, up from 23 cents a year earlier.
In the latest year, the company's New Zealand operations lifted earnings before interest, tax, depreciation and amortisation by 6.5 per cent to $75.8m.
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