ASX 200 dips, Collins Foods drops, Kathmandu falls

The ASX 200 dropped slightly today, with Collins Foods reporting its FY21 result.
The post ASX 200 dips, Collins Foods drops, Kathmandu falls appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) went down by around 0.1% to 7,301 points.

Here are some of the highlights from the ASX today:

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price dropped around 5.7% after revealing its FY21 report. It was the worst performer in the ASX 200. 

It reported that total revenue increased 12.4% to $1.07 billion, with KFC Australia revenue rising 13.8% to $900.4 million. KFC Europe same store sales (SSS) declined 0.6% whilst Taco Bell revenue rose 57.4% to $28 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations (before AASB 16) went up 12.4% to $136.3 million. Underlying net profit after tax (NPAT) (before AASB 16) increased 18.2% to $56.9 million.

The ASX 200 share’s board declared a final dividend of 12.5 cents per share. That brings the total FY21 fully franked dividend of 23 cents per share, up 15%.

Collins Foods CEO Drew O’Malley had these comments on the outlook and Taco Bell:

With continuing strong cash generation and a healthy balance sheet, Collins Foods is well positioned to continue to pursue strategic organic and acquisition growth opportunities across the group in the year ahead.

Taco Bell is on track for accelerated development in FY22, supported by ongoing consumer demand for Mexican in Australia, and a refined marketing approach. With nine to 12 new restaurants in the pipeline in the year ahead, we remain committed to our strategy of achieving scale within three to five years. New restaurants will be opened in tightly concentrated clusters in Queensland and Victoria and we expect to open our first Perth restaurant in late 2021. Increased points of presence support brand visibility and will be complemented by a simplified marketing strategy that emphasises the core product range and everyday value, as we continue to brand drive awareness and trial.

Kathmandu Holdings Ltd (ASX: KMD)

The Kathmandu share price dropped 4% today after giving an update.

A number of its stores have suffered disruption because of the latest lockdowns of stores in NSW and WA. There was also the impact of the Victorian lockdown at the start of June.

Kathmandu’s sales for FY21 are expected to be below original expectations at approximately $930 million and underlying EBITDA is estimated to be approximately $120 million.

The impact of the NSW and Victorian lockdowns is estimated to be around $13 million of EBITDA.

Kathmandu did say that its stores had a positive start to winter, with trading broadly in line with pre-COVID-19 levels before Australian lockdowns began to cause impacts.

However, Rip Curl has continued to trade strongly according to the company. Despite COVID-19 disruptions, the North American and Europe regions have been “well above” pre-COVID-19 levels. Wholesale orders received for FY22 continue to show double digit growth compared to FY19.

Oboz has seen record sales performance in the second half of FY21, with wholesale orders for FY22 significantly above both FY19 and FY20.

Regional Express Holdings Ltd (ASX: REX)

The regional airline, which calls itself Rex, announced it had signed a letter of internet (LOI) with a lessor for the lease of two Boeing 737-800NGs.

The two aircraft are expected to arrive in late August, increasing the 737 fleet to eight, and are scheduled to enter service on Rex’s domestic network in September.

Rex said that the two additional aircraft will provide Rex with the ability to launch new routes to other capital cities, large regional centres and popular leisure destinations. The new routes will be announced shortly.

The post ASX 200 dips, Collins Foods drops, Kathmandu falls appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

Here are 3 ASX 200 shares making market moves today

Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking

ASX construction shares like Brickworks (ASX:BKW) are falling today
ASX 200 down 0.9%: Big four banks drop, Metcash charges higher

Collins Foods (ASX:CKF) share price hits record high after reporting strong FY 2021 growth

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!