Collins Foods Ltd: A Comprehensive Analysis of Financial Decisions

This report analyzes the financial performance and business decisions of Collins Foods Limited, focusing on their revenue growth over five years. The company has shown an average annual revenue increase of 9.41%, indicating value creation on its investments. While Sizzler Thailand experienced a 4% revenue increase, Sizzler Australia closed due to overall revenue decline, resulting in a statutory NPAT loss of $10.4m in 2017. The total segment revenue of Sizzler is $633,562, a 12% increase compared to the past five years. Trend analysis forecasts continued positive inclination, projecting a 25% increase in overall total revenue, suggesting strong future sustainability for the organization.

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Business Decision making

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Contents
Answer to question no-1.............................................................................................................................2
References...................................................................................................................................................3

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Answer to question no-1
Collins Foods Limited has increased its annual revenue by average 9.41% in 5 years
which shows that company has created value on its investment throughout the time. The revenue
of the Sizzler has increased by 4% in Thailand since last four year and due to the decline in the
overall revenue, Sizzler Australia has closed down. The Underlying Net Profit after Tax (NPAT)
of the Sizzler was $24.6m in 2015. The recorded statutory NPAT loss of company is $10.4m in
2017 which arise due to the closure of its Sizzler restaurants (Collins Foods Limited, 2016).
It is analysed that the total segment revenue of Sizzler is $ 633,562 which is 12% higher
as compared to last five year data (Collins Foods Limited, 2017).
Particular KFC
restaurant
Sizzler Shared
Services
KFC
Europe
Others Total
$ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000
Total
segment
revenue
(2016)
501,638 72,646 - - - 574,284
Total
segment
revenue
(2017)
549,472 65,049 - 14,806 4,235 633,562
The above given table has been prepared on the basis of the data shown in the annual report of
company. After that by using the trend analysis forecasted results have been drawn.
This shows that the overall cash inflow from its all the operations have been increased
throughout the time. On the basis of last year data, it is analysed that company has increased its

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overall total revenue by 10% since last one year. In addition to this, in 2016, company also
increased its overall revenue by 12% as compared to 2015 revenue (Warren, Reeve, and Duchac,
2013).
On the basis of last year data, and closure of Sizzler Australia, it could be inferred that company
will be having increase in its overall sales throughout the time (Collins Foods Limited, 2015).
By using the trend analysis, we could determine the future trend of the business.
Year 2015 2016 2017 2018 2019 2020 2021
Total
Revenu
e( '000)
$
4,75,680.
00
$
5,74,284.
00
$
6,33,562.
00
$
7,19,057.
33
$
7,97,998.
33
$
8,76,939.
33
$
9,55,880.
33
2015 2016 2017 2018 2019 2020 2021
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
Year
Total Reveune( '000)
This shows that company will have positive inclination in the near future (Li, 2015). In
the near future, company will have increment in its overall total revenue by 25% which is highly
good indicators or the business success of the organization. Now in the end, it could be inferred

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that the future forecasted results based on the last year data is very positive which makes this
company highly sustainable in the near future.

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References
Collins Foods Limited, 2015, annual report, available at https://www.google.co.in/search?
q=collins+foods+limited+annual+report+2015&oq=Collins+Foods+Limited
%2C+201&aqs=chrome.2.69i57j0l2.8268j0j7&sourceid=chrome&ie=UTF-8, accessed on 20th
April, 2018
Collins Foods Limited, 2016, annual report, available at http://member.afraccess.com/media?
id=CMN://2A1025994&filename=20170727/CKF_01877341.pdf, accessed on 20th April, 2018
Collins Foods Limited, 2017, annual report, available at http://member.afraccess.com/media?
id=CMN://2A1025994&filename=20170727/CKF_01877341.pdf, accessed on 20th April, 2018
Li, X., 2015. Accounting conservatism and the cost of capital: An international analysis. Journal
of Business Finance & Accounting, 42(5-6), pp.555-582.
Warren, C.S., Reeve, J.M. and Duchac, J., 2013. Financial & managerial accounting. Cengage
Learning.