Collins Foods Limited (CKF) Earnings Call Transcript & Summary

Good morning, everyone. My name is Robert Kaye, and I'm the Chair of Collins Foods Limited. I'd like to welcome all that are joining us, and thank you for attending the company's 2025 Annual General Meeting. We're pleased that shareholders are taking advantage of technology that enables us to meet online and allows our shareholders to engage with us in real time from different locations. At this Annual General Meeting, only shareholders, their appointed proxies corporate representatives or attorneys are entitled to make comments, ask questions or vote. All other attendees are, of course, welcome as observers. Under the Collins Foods Limited constitution, a quorum is 2 shareholders and our company secretary has informed me that we have a quorum present, and it's also 9:30 a.m., and I declare the meeting open. Before I go further, I'd like to introduce your Board of Directors present at the meeting today. To my immediate right is Xavier Simonet, our Managing Director and CEO. Next to him is Nicki Anderson. Nicki is the Chair of the company's People, Culture and Nominations Committee. We then have Nigel Clark, who is based in the United Kingdom, an independent nonexecutive director. And besides Nigel is Mark Hawthorne, an independent nonexecutive director who is up for reelection at this AGM. We then have Christine Holman, Chair of the Audit and Risk Committee; and Kevin Perkins, a Nonexecutive Director, who is also up for reelection at this AGM. To my left is Tracey Wood, our Chief Legal and Risk Officer and Company Secretary for Collins Foods. We're also joined in the room by some of our executive team, including Andrew Leyden, to the front of me, who is our Group CFO; Jo Matthews, the Group Chief People and Culture Officer, feel free to raise your hand. And Krystal Zugno, our General Manager for Australian operations. Michael Crowe, representing the group's auditor, PricewaterhouseCoopers, is also in attendance, thanks, Michael. And you'll also find biographies of each of the directors and the executive team on the company's website. So after outlining a few matters of procedure, I'll begin with a review of the 2025 financial year. Following this, Xavier, our MD and CEO, will provide an update on our focused strategy to continue to deliver earnings growth to shareholders. Following those addresses, we'll take questions, allowing the shareholders an opportunity to consider responses to those questions before moving to the formal business of the meeting. A copy of the Notice of Meeting dated the 25th of July 2025 has been distributed with the 2025 annual report to shareholders. And if there are no objections, it will be taken as read. The Notice of Meeting and the company's web page provided shareholders with information on how to participate ask questions and vote at the AGM online using a desktop or mobile device. I'll now remind shareholders of the process to submit a question and vote online. Text questions can be submitted through the online meeting platform at any time from now onwards. So to ask a question, simply press the Q&A icon. Type your question into the text box and once you finish typing, please press the send button. To ask a verbal question, please follow the instructions written below the broadcast. If you're a shareholder in Brisbane and wish to ask a verbal question at the time, verbal questions will be taken. Please wait for a microphone so that your name and question may be heard clearly by all. As indicated earlier, questions will be addressed later in this meeting. These questions will be moderated to avoid repetition. And if questions are particularly lengthy, we may need to summarize them in the interest of time. Depending on the question asked, I'll make the decision whether I'll answer it or will ask a member of management, another director or the auditor to respond. In the unlikely event that we run out of time to answer all the questions, we will respond to it separately after this meeting. I do encourage you to submit your questions as soon as you can. All items of business will be decided on a poll. I'll open the polls now, and I'll keep them open so you can vote at any time during the meeting. If you're eligible to vote at this meeting, and have logged into the online platform, a voting icon that looks like a page will appear on your device screen or navigation bar. When you click this icon, the resolutions will appear on your screen and you can select a voting option. There's no need to select the submit or enter button as the vote is automatically recorded. Shareholders will have the ability to change their vote during the meeting until I declare the polls closed. I'll close the polls at the end of question time, and so I encourage you to vote as soon as possible. For the shareholders and proxy holders here in Brisbane, you may choose to complete your voting card in its entirety. Jesse Yerma from Computershare will act as returning officer for the purposes of conducting and determining the results of the poll, the results of which will be announced to the ASX when final results are known. I now declare the poll open. The voting icon should soon appear if it hasn't already. Please submit your votes any time from now until the resolutions have been read. If you're having any difficulties in locating the voting or voting icon, please refer to the detailed guides available on Collins Foods' website. You'll be pleased to hear that Xavier will be speaking to you in a moment. But I wanted to start off by making just a few brief remarks. FY '25 was a transformative year for Collins Foods. Under the leadership of our new MD and CEO, Xavier and his executive team, we reviewed our strategic focus and laid the foundations for long-term growth. Our strategic road map centers on the profitable expansion of the KFC brand in Australia and Germany supported by the consistent delivery of operational excellence across all our operations. We also made the strategic decision to exit the Taco Bell business, allowing us to concentrate resources on our core growth pillars. In Australia, our KFC operations continue to be a strong engine of growth and profitability. We are expanding our network, innovating across products and services and consistently improving restaurant operations. Our long-standing partnership with Yum! Brands remains a key enabler of this success. Germany is our second strategic growth pillar. Through a new agreement with Yum! Brands, we plan to accelerate restaurant development, targeting 40 to 70 new KFC restaurants over the next 5 years. With more than 80 million consumers and low KFC market penetration, Germany presents a compelling opportunity. Despite being subscale today, our restaurant economics are strong, and we're excited about the potential of this market. Turning to the Netherlands. Our immediate priority is improving profitability. We're focused on delivering high-quality customer experiences to drive sales, support brand health, and enhance productivity. As a result, our development aspirations in this market have been moderated in the short term. In November, the Board appointed Xavier Simonet as MD and CEO. Xavier is a highly experienced global executive with a proven track record of driving growth and profitability across diverse markets. His previous roles include Group CEO and Managing Director of Kathmandu Holdings, CEO of Austrade and CEO of Radley London. He's hit the ground running at Collins Foods and the Board is confident that we have the right executive team in place focused on clear priorities. We also acknowledge the contribution of Kevin Perkins, who served as Interim Managing Director and CEO before resuming his executive director role. On behalf of the Board, I'd like to thank Kevin for his steady leadership during a challenging period for the QSR sector. Collins Foods demonstrated the underlying strength of its business in FY '25, delivering a robust financial performance in challenging trading conditions. Group revenue in FY '25 surpassed a record $1.5 billion. Underlying EBITDA was relatively stable at $228.5 million despite cost inflation and weaker consumer sentiment. Underlying NPAT was $51.1 million, lower than prior year. However, performance strengthened in the second half with year-on-year revenue growth in revenue and underlying profits. Following our strategic review, we did impair 16 restaurants in the Netherlands resulting in a noncash impact of $35 million. This reflects the impact of cost of living pressures and significant labor inflation on profitability of restaurants in that market. To deliver value to our shareholders, we declared a final dividend of $0.15 per share, bringing the total dividend for FY '25 to $0.26. At Collins Foods, our people are at the heart of everything we do. As part of our commitment to our now 21,000 team members, we have undertaken a comprehensive wage compliance review supported by external advisers. This covers a range of employee entitlements across various roles and time periods. The review, however, remains ongoing, and we anticipate being in a position to commence remediating impacted team members shortly. We remain actively engaged with the Fair Work Ombudsman and are committed to fairness, transparency and doing the right thing by our team. Collins Foods is well positioned to capitalize on improving market conditions with a clear road map for long-term growth a world-class brand in KFC and deep operational expertise, we're confident in our ability to deliver sustainable value. Our strong balance sheet and disciplined capital allocation framework will support investment in current and future growth opportunities. Sustainability is increasingly central to consumer trust and long-term brand value. In FY '25, we refined our sustainability priorities and strengthened data quality, governance and compliance readiness ahead of upcoming mandatory reporting standards. Our sustainability report 2025 outlines key achievements, including more responsible resource use and set out our future goals. Our sustainability efforts are not only about compliance, they're central to building enduring trust and shareholder value. And finally, thank you to our loyal shareholders for your ongoing support to our team members for their dedication and resilience and of course, to my fellow directors for their valuable governance and oversight of your company throughout the year. Collins Foods has entered FY '26 with a clear growth strategy, strong leadership and a commitment to creating long-term value for our shareholders. I'd now like to welcome Xavier, our MD and CEO, to address you.

Thank you very much, Robert. Good morning, everyone. It's a pleasure to be here today. Since joining Collins Foods as Managing Director and CEO back in November, my focus has been sharpening our strategic priorities to grow the business, improve profitability and create long-term shareholder value. We have a clear strategic direction, grow our KFC Australia operations, accelerate expansion in Germany as a second growth pillar, improve profitability in the Netherlands, and drive operational excellence to deliver even better customer experiences. Over the past 10 months, we've made significant progress. Performance improved in the second half of FY '25, and this momentum has continued into FY '26. And at this stage, I'd like to acknowledge the 21,000 team members at Collins Foods and thank them for their resilience at a time of change and some disruption, but also their contribution to our performance, particularly our RSC, restaurant support centers team members in Dusseldorf, in Amsterdam and here in Brisbane as well as our teams in the restaurants. And I suggest we give them a round of applause for their work. I'd like also to give a special shout out to Nick Antonello, who's managing our Taco Bell business. As you know, Taco Bell is transitioning. And the team has done a superb job in terms of focusing on operational excellence and driving the business the best they can in a time of transition. Disciplined capital allocation toward profitable growth opportunities is our priority. As part of this, we made the strategic decision to exit our Taco Bell operations. We're working closely with Taco Bell International to transition the business during FY '26. To support our strategic priorities, I've also made several leadership changes to strengthen our focus on operational excellence. Krystal Zugno was promoted to lead KFC Australia. She's an outstanding operator. Chris Johnson returned to Collins Foods and has now been appointed as General Manager, Europe on a permanent basis is also an outstanding operator. Importantly, the world-class KFC brand remains in strong health in all markets, supported by menu and service innovation and a continued focus on digital customer engagement. In a challenging market, we delivered a solid underlying financial results. Group revenue reached a record $1.5 billion. Underlying NPAT was $51.1 million, down 14.8% year-on-year. Encouragingly, macro shifts including easing commodity prices, interest rate cuts and early signs of a consumer-led recovery emerged in the second half of the financial year and continue in FY '26. Statutory NPAT of $8.8 million included $35 million impairment of 16 KFC Netherlands restaurants, smaller impairments to a single restaurant in each of Australia and Germany, a $3.2 million provision top-up for potential wage underpayments. Our balance sheet remains very strong, providing capacity for investment in future growth opportunities. Strong cash flows enabled net debt reduction and facilitated network and technology reinvestment. KFC Australia. Australia remains our largest and most profitable market, generating nearly $1.2 billion in revenue in FY '25, up 3% year-on-year. Growth was supported by 10 new builds and 40 remodeled restaurants, including 8 supercharged formats. These new and upgraded restaurants unlock operational capacity in peak periods. Digital sales accounted for 34.2% of revenue, up from 29.4% last year, driven by increased kiosk availability and app penetration. Kiosks were installed in an additional 106 restaurants. KFC continues to lead its QSR peers on key brand metrics, including brand index, taste and consideration, which reached a 4-year high. Now KFC Europe. FY '25 was challenging for our European operations and for our team, given negative consumer sentiment. Revenue was $312 million, slightly down year-on-year. Same-store sales declined 2.5% in the Netherlands and 3.3% in Germany. Same-store sales performance improved modestly in the second half. Sales in Germany were impacted by the transition of the management of the German market between Yum! Brands and the previous master franchisee. In the Netherlands, profitability was impacted by soft consumer spending, coupled with significant labor inflation over the last 3 years. As a result, we have moderated our development aspirations in the short to medium term and the immediate focus in FY '26 is on innovation and operational excellence to drive same-store sales and profitability. In Germany, our priority is accelerating profitable restaurant development. Despite being subscale in Germany, average restaurant revenues and margins are broadly comparable to KFC Australia. We will initially focus development on 2 large German states with significant development potential North Rhine Westphalia and Baden-Wurttemberg, where a single KFC restaurant currently services 391,000 and 407,000 people, respectively, which compares with under 30,000 people in Queensland as a point of reference. In time, we look at penetrating other states with targeted acquisitions and development. Our strong performance in the second half of FY '25 has continued into the new fiscal year. Total company sales in the first 18 weeks are up 6.7% on the prior corresponding period, driven by same-store sales growth in all markets. KFC total sales were up 5.1% in Australia, plus 4.8% in the Netherlands and plus 8.4% in Germany. KFC same-store sales growth for the same period was plus 2.3% in Australia, plus 1.2% in the Netherlands and plus 5.8% in Germany. Our sales outcomes continue to show strong improvement since our last update to the market, reflecting the benefits of enhanced product innovation and a sharper focus on execution and operational excellence in restaurants. We remain immensely focused on improving customer engagement to grow sales, lifting labor productivity and managing costs in a disciplined way to deliver margin improvement for our shareholders. For FY '26, we reiterate our target of year-on-year group underlying NPAT growth in the low to mid-teens on a percentage basis. Thank you. And I'll now hand back to Robert.

Yes. Thanks again, Xavier. I'd now like to provide shareholders with an opportunity to ask general questions. A reminder that we'll take questions relating to the formal business of the meeting prior to considering those items of business. As indicated on the screen, hopefully, to type a question, press the Q&A icon and as I said earlier, type your question into the text box. Once you finish typing, please press the send button. To ask an audio question, please follow the instructions written below the broadcast. For shareholders attending in person, please wait for a microphone so that your name and question may be clearly heard. So to begin with, are there any general business questions not related to the resolutions that from shareholders in the room. I think we have a question there from...

Good morning, Robert. Stephen Mayne is my name, representing the Australian Shareholders' Association today. I just want to say thanks again to you and the Board for another constructive engagement this year and the generally good governance and how shareholder-friendly we think you are. So I appreciate that over the last year. I know we've got some specific director elections coming up, but just a general request first and then question. We'd love to see a more detailed Board skills matrix going forward where you really broke out the individual skills of the directors rather than the kind of general format that you have at the moment, just to make it a bit easier for folks that are considering which way they're going to vote. And the second question here was more tied to what you presented today around Germany representing a big opportunity for the business. Is there any consideration being given to adding a director that might have significant experience in this industry or quick service restaurants in Europe. I know we've got Nigel that's based in the U.K., which is great, but we're thinking here is someone that's a real QSR expert that might be able to help Xavier and the team with oversight and support.

Yes. Yes. Look, as always, firstly, thank you for your support as well and our continued engagement. And Collins genuinely appreciates these opportunities to engage through the out of cycle as it were, not just at AGMs. And as I say, that's appreciated. Look, I'll take on board, if I may, the matrix. We've got these screens in front of me, which I apologize for that. Hopefully, you can see me. I can see you're a little bit distorted through that -- yes, I feel like Donald Trump sometimes Hopefully, I won't behave accordingly. The -- look, I think you raised a valid issue there. I'm quite happy to deal with that. And in fact, I wouldn't mind perhaps even online engaging with you on that just to see, I guess, what best practice looks like. I could speak to the -- obviously, the particular attributes of particular directors. I think that would be unhelpful at the moment, particularly given the elections that are about to occur. But I think that's a very valid comment, and I'll certainly take them on board. As to your second question or comment around Germany, look, it's an interesting one. The -- as you'll appreciate, and that's probably relevant to some of the things that are going to happen over the next year or 2. Obviously, Board succession is a continual process. And we strive to ensure that Board membership reflects diversity but not only diversity. It's a question also of ensuring that we have a sufficiently wide and diverse competency, skills, experience matrix and so on, we think we've struck the right balance. I think -- and obviously, in the next couple of years, there will be changes on the Board. And I didn't make any secret out of that at the last AGM. And certainly, that's probably going to become more prominent in terms of our attention over the coming year or 2. What I would say about Europe is that fortunately, we've been able, as Xavier has briefly alluded to, to appoint a very, very astute and individual to effectively general manage our European business, Chris Johnston. The Board has had considerable engagement with him as obviously as our management. And we have a lot of confidence that I mean, he has deep QSR skills. That doesn't quite answer your question. Look, I agree with you. I think that's certainly worthy of consideration in relation to the next appointment. I would say in relation to Nigel Clark, who sits here. He isn't just a pretty face. He's that too, that he's very much engages with our management on the ground in Europe. And obviously, there are convenience factors, but also he's been heavily involved in the business even before his formal appointment a few years ago. for some years. So he has a very good grasp of sort of headline issues and indeed challenges facing the QSR industry. But having said all that, look, that will definitely be an option for us and leave it with us and kind of watch this space. At the end of the day, very comfortable with the diversity of skills around sort of QSR in particular, on the Board at the moment. Obviously, Kevin and Mark and in terms of FMG, Nicki and Christine, they've all got vast experience in this area. But I agree in terms of the sort of euro-centric issue, which is clearly very important for us given the statements you've heard around our kind of refocus, I mean, we're always focused, but accelerating, if you like, the focus on particularly Germany. I think that's a very apt observation. Any other questions unrelated as it were to the items of general business? If not, I'm going to pull this paper -- all right. So again, just a reminder, because I'm being told to remind everyone, shareholders that the poll will be closed at the end of question time. So if you haven't done so already, please submit your votes. Good. Please proceed.

Mr. Chair, there is a question with respect to general business from a shareholder before we move to the next section. Are you happy to take that?

I am.

So this question is from shareholder, Stephen Mayne, and it's directed to you actually. So can Robert Kaye confirm that he won't be seeking reelection when his current term expires in 2027?

Yes. Stephen, did that make your day? Any other questions?

That's all, Mr. Chair.

Thanks, Adrian. All right. So as indicated at the beginning of the meeting, the Notice of Meeting dated the 25th of July 2025, and the resolutions set out in that notice are taken as read. The proxy results should now be displayed on your screen. As you can see from the proxy results, as voting presently stands, all resolutions have been passed. The 2025 annual report contains the financial report, the directors' report and the independent auditor's report. The financial report has been approved by the directors and audited by Collins Food Limited's independent auditors, PwC. As required by Section 317 of the Corporations Act, I now lay before the meeting the financial report, the directors' report and the independent auditor's report for the financial period ended 27 April 2025. Are there any questions for the auditors, PwC, regarding the conduct of the audit preparation and content of the auditor's report, accounting policies adopted in the preparation of the financial statements or independence of PwC in relation to the conduct of the audit? Adrian, are there any online written or verbal questions?

No, Mr. Chair, there are no questions forward.

Thank you. I'll now turn to Resolution 2 regarding the reelection of Mark Hawthorne, who being a Director of the company, retires and being eligible, offers himself for reelection. Are there any questions relating to the reelection of Mark Hawthorne as a Director from shareholders? Yes.

So Mark, noting your considerable experience with competitors and in the industry Firstly, a comment, I think we're appreciative that you made the decision to end the Taco Bell business. We're complementary that you had a crack at it. And obviously, if it wasn't working to reallocate that capital in other ways. So no complaints there. But in terms of your experience and knowledge of the competitive industry, just a general comment on how you feel KFC is positioned in Australia with an aggressive competitor in GYG. Are you feeling optimistic and confident about the prospects for KFC in Australia, particularly in the next few years?

Do you want to come up here?

Yes. Thanks for the question. Good question. The answer is yes. When I left GYG, I felt KFC had the biggest upside out of all the legacy brands. And part of that thinking is that if you look at an average unit volume sense of the competitors, McDonald's is the highest at160 a week talking drive-thrus. GYG is second at 120 and then KFC is about 80. So I look at the 80, I think it's a great brand, KFC, fried food. It's a very much loved brand. I personally believe there is quite a bit KFC can do to bridge that gap. When you look at the things that McDonald's and GYG do differently. So I remain very confident about KFC's business and enjoying helping management work at what to what to do with that. And hopefully, we'll do that for the next 3 years.

If I could just add just one small comment. I mean, obviously, Mark's input on operational issues is invaluable. There are, as you'd be aware, independent assessments made in relation to brand strength and so on, which obviously, we've got constant access to. And I find it -- and I think we've had some conversations around this in years gone past, and the position hasn't changed. It actually astounds me the brand strength of KFC after all these years. It just goes from strength to strength. So even in times when there are obviously there's obviously the consumer sentiment is perhaps not quite where we'd like it to be and inflationary pressures and the like. it holds up. And you might have the odd temporary trough, but it always seems to rise to the occasion. And I'm personally and I know as a Board, we're very confident that will continue to be the case. Thanks for the question. Adrian, are there any other questions in relation to that resolution?

No, there aren't, Mr. Chair.

Thank you. So I turn to Resolution 3 regarding the reelection of Kevin Perkins. I don't think Kevin needs a lot of introduction, but he was last reelected as a director on Friday, the 27th of August 2021. At that last AGM, he was serving as the company's Interim Managing Director and CEO. We had dragged him out of kind of executive retirement. And accordingly, Kevin was not required in this new build. He wasn't required to stand for reelection, while holding that executive office. Having since concluded, obviously, that interim role and resumed his position as an NED as a Nonexecutive Director, he now retires and being eligible, offers himself for reelection. Are there any questions relating to the reelection of Kevin Perkins as a Director from shareholders? Adrian is there any from the room? Adrian, are there any online written or verbal questions?

No, Robert. There are no questions on this resolution.

Thank you. I'll now turn to Resolution 4 regarding the adoption of the remuneration report for the 2025 financial year. Are there any questions regarding Resolution 4?

There are none.

Robert, a question, sorry. So firstly, a comment, I just want to commend the board on not using any discretion last year to override your remuneration plan. I know that probably cost Xavier a little bit of money, but it was great that you applied your remuneration plan accurately and fairly. So that's always a shareholder-friendly option. The LTI plan, the hurdles that you've got set there are quite challenging we think, which is a great thing. We don't have any complaints with double-digit earnings per share growth as one of the targets. So how -- Nicki, maybe a question for you or Xavier. How are you feeling about that over the next few years, having that 11% to 16% range, I think it is of where LTI kicks in and ramps up. Is that a concern for Xavier. And is the Board considering those metrics at the moment?

Thanks for the question. It's a challenging question because I'm still new in the business and discovering the business. So I need a bit more time to understand the business and challenge ourselves. Yes, it's a high target and it's challenging. I think we've shown over the last 10 months that we can adjust the business model quite quickly. And by just focusing on core capabilities, core metrics and operational excellence, we can really drive growth and profitable growth. So that's really my focus. We've said also that beyond Australia, beyond Europe, and we're trying to accelerate in Germany, there's also the opportunity to acquire businesses. We've not been too precise because we want to be open-minded. We've just said that we want to be disciplined, have a really disciplined approach. We want to make sure that any target we would consider is aligned with our strategic priorities and also want to make sure that it will deliver high returns to shareholders. By experience from experience, I'm aware also that a lot of acquisitions never work and I plan for shareholders rather than a benefit. I'm very conscious of that. I can commit that we'll never make an acquisition if we don't fully believe that they will deliver strong shareholder return aligned with our key priorities and our discipline. So I think all in all, between all of that, we're going to try to do our best. I strongly believe that there's immense value for shareholders in us focusing on our core business. and focusing on managing our stores better, delivering on key operational metrics and driving the team and having a very motivated team that's excited to drive the numbers and give great customer experiences.

Robert, just apologies for interrupting. There is another question with respect to this resolution, which I could read out for you as well.

Yes, sure.

So this question is from Stephen Mayne. It's quite a lengthy question. It's even got a little bit of editorial in it as well, but let me go through it. Thank you for disclosing the proxies early and well done on achieving such strong support. When disclosing the outcome of voting on all resolutions today, including this remuneration item, please advise the ASX how many shareholders voted for and against each item similar to with the scheme of arrangement. This will provide a better gauge of retail shareholder sentiment on all resolutions and insight into the chronically low retail shareholder participation rate. The likes of Qantas, ASX, Suncorp, Tabcorp and even the world's biggest share registry provider, Computershare, have all voluntary provided this data at their most recent AGMs. You've got the data, so why not let the sun shine in?

I never hide the sunshine. But look, thanks, Stephen, for the question. And look, I think it's a -- at first blush, I don't think it's an unreasonable request. I'll take it on board, if I may. And with respect, if I had known about the issue earlier, and maybe you've raised it earlier and it just hasn't been communicated to me, I certainly would have attempted to address it in advance. I have no issue in principle with disclosing numbers of shareholders. I'm not going to comment, obviously, on the practices of other companies. I'm not acquainted with those. But at first blush, it doesn't appear to me but to be objectionable and it's something that I'll look at. Can I just add something in response to the earlier question, if I may. And thanks, Xavier, for that comprehensive answer. We've gone, obviously, to some lengths under the very strong guidance I might add of Nicki Anderson as Rem Chair to create a remuneration regime and structure that's fit for purpose. As you'd appreciate it's not an easy thing to do. And it's -- there always will be sort of outliers where you can't fully address. But I think that the fundamental changes that have been made and some are nuanced have been very well received. And for what it's worth, the proxy advisers, we obviously engage with on these issues have been almost unanimously supportive of the current regime. If you're talking about incentivizing, yes, I think that's a real issue, if I may say so, with every remuneration structure that I've come along that I've seen, both on this company and others over the last decade. It's how do you make it real? How does it -- how do you make -- how do you ensure that it truly incentivizes so it's workable because otherwise, it's just a piece of paper. And look, that's something that we're very conscious of. And we do encourage and we do, in fact, engage with management on these issues to ensure that the incentivization element is there and obviously, retention. Thanks for the question. Are there any other online written or verbal questions in relation to that resolution, Adrian?

No, Robert.

Thank you. Turning to Resolution 5, to approve the grant of performance rights to Xavier Simonet. Are there any questions regarding Resolution 5. There are none in the room, Adrian, any online, written or verbal questions in relation to Resolution 5?

There's one from Stephen Mayne, which I can read out Is Xavier aware that the share price has shot up 7% this morning after the update, well done. What impact does this have on his STI and LTI plans, including this incentive grant?

Look I'm going to take that question, if I may, Stephen. Firstly, I've just been informed, obviously, by you of that. I'm not going to give an off-the-cuff answer to the impact. There are obviously a number of issues around impact. And I don't think it would be feasible or wise to be giving you, as I say, an off-the-cuff answer. But obviously, that will play out. And again, if you're interested in pursuing that question, which I'm happy for you to do. I will take it online once we see where the share price lands over the next few days. Any other questions, Adrian?

No, there are no other questions, Robert.

In that case, we'll turn to Resolution 6 being the ratification of the previous issue of shares under the ownership share plan. Are there any questions regarding Resolution 6? There are no questions in the room, Adrian, are there any online written or verbal questions?

Yes, Robert, from Stephen Mayne. His question is, do we really need to put this resolution up given it's such a small amount of shares comprising such a tiny proportion of the 15% cap. Can you avoid doing this next year as it sends a message that you'd like placements when pro rata capital raisings are the fairest way to go?

Look, with respect, I take Stephen, a slightly different view to that. I agree that in terms of proportionality, it's not particularly material. But I think the ownership share plan for Collins is a significant element of our overall remuneration package. It is also one of many vehicles for attracting and retaining staff. And I think putting some emphasis on that is warranted. Happy to again talk about it with you offline, but I'd probably take a different view. Are there any other online written or verbal questions in relation to that resolution?

There are no other questions, Robert?

Thank you. So that brings the formal business of the meeting to an end. As indicated, I will shortly close the poll. If you haven't yet voted or wish to change your vote, having had an opportunity to hear questions and the response to those questions, please do so now. Members of the Computershare team will now collect your voting cards here in Brisbane and we'll just pause whilst those cards are collected. Good. Well, I declare the poll closed and confirm as indicated earlier in the meeting that the final results will be announced by the ASX once the final results are known. I thank you all for your attendance this morning and look forward to a successful and prosperous year for Collins Foods and its shareholders and equally importantly, all it's our team. Thank you.