ASX 200 dips, Collins Foods drops, Kathmandu falls

The ASX 200 dropped slightly today, with Collins Foods reporting its FY21 result.

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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:

white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

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.

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.

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