Good morning, ladies and gentlemen. My name is Robert Kaye, and I'm the Chairman of Collins Foods Limited. I'd like to welcome you all, all of you that are joining us, and thank you for attending the company's 2023 annual general meeting. We're pleased that shareholders are taking advantage of technology that enables us to meet online and allows our shareholders, their appointed proxies, corporate representatives, or attorneys to ask questions and submit votes in real time from different locations. At this meeting of Collins Foods Limited, shareholders, only shareholders, their appointed proxies, corporate representatives, or attorneys are entitled to make comment, ask questions, or vote. All other attendees are welcome as observers. Under the Collins Foods Limited Constitution, a quorum is two shareholders, and our company secretaries inform me that we have a quorum present.
It's also 9:30 A.M. or just after, and I declare the meeting open. Before I go any further, I'd like to introduce your board of directors who are present, obviously, at the meeting today. To my immediate right is Drew O'Malley, our Managing Director and CEO, and next to him is Nicki Anderson. Russell Tate, who has served as the Chair of the company's Remuneration and Nomination Committee and as a member of the Audit and Risk Committee, is seated next to Nicki. After 12 years of service, including four years as Collins Foods Chair, Russell retires at the conclusion of this AGM. It's intended that Russell will be succeeded by Nicki Anderson as the Chair of the Remuneration and Nomination Committee. Next to Russell is Kevin Perkins, a Non-executive Director who serves as a member of both the Audit and Risk Committee and the Remuneration and Nomination Committee.
To my left, Fran Finucan, the Company Secretary. Next to Fran is Christine Holman, Chair of the Audit and Risk Committee and a member of the Remuneration and Nomination Committee. And seated next to Christine is Mark Hawthorne, Independent Non-Executive Director and a member of the Audit and Risk Committee and the Remuneration and Nomination Committee. We're joined in the room by Michael Dernier, Acting Group Chief Financial Officer, and other executive members. We have Michael Crowe, representing the group's auditor, PricewaterhouseCoopers, who's also in attendance. Now, you'll find biographies of each of the directors and executive team on the company's website. After outlining a few matters of procedure, I'll begin with a review of the 2023 FY. Following this, Drew, our Managing Director and CEO, will provide an update on our focus strategy to continue to deliver earnings growth to shareholders.
Following the addresses, we'll take questions, allowing shareholders an opportunity to consider responses to those questions before moving to the formal business of the meeting. Ladies and gentlemen, a copy of the notice of the AGM, dated 28 July 2023, has been distributed with the 2023 annual report to shareholders, and if there are no objections, it will be taken as read. The notice of AGM and the company's webpage provided shareholders with information on how to participate, ask questions, and vote at the AGM online using a desktop or mobile device. However, 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. To ask a question, press the Q&A icon, then type your question into the text box.
Once you've finished 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 that 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 on 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 interests of time. Depending on the question asked, I'll make the decision whether I'll answer it, or I'll ask a member of management, another director, or if need be, the auditor to respond.
In the unlikely event that we run out of time to answer all the questions, we'll respond to you separately after this meeting. I do encourage you to submit your question as soon as you can. All items of business will be decided on a poll. I'll open the polls now. 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. Once you click this, the resolutions will appear on your screen, and you can select a voting option. There's no need to select a Submit or Enter button, as the vote is automatically recorded.
Shareholders will have the ability to change their vote during the meeting and until I declare the polls closed. I'll close the polls at the end of question time, and so I do 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. Lewis Brimelow 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 once these 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 icon, please refer to the detailed guides available on Collins Foods' website. Now, Drew will be speaking to you in a moment, but I wanted to just start off by making a few remarks. Collins Foods delivered solid top-line growth in FY 2023 amidst the challenging landscape, benefiting from increased scale in Australia and Europe. Both of our KFC businesses recorded strong same-store sales growth, reflecting the continued strength of the brand and increased adoption of digital and delivery channels. KFC Australia surpassed AUD 1 billion in sales for the first time. Higher ticket prices and strong growth in e-commerce, supported by the rollout of Uber Eats, were primary contributors to the increase in same-store sales growth. With the addition of 11 new restaurants, Collins Foods' Australian network now stands at 273.
Collins Foods' European KFC operations continued its strong momentum, delivering impressive double-digit revenue and same-store sales growth, as operational control under our Netherlands corporate franchise agreement strengthened brand and product quality perceptions. Increased transaction volumes and higher ticket sizes, as value-led marketing campaigns resonated with customers, underpinned same-store sales growth. Collins Foods continues to move towards scale in the region, with its footprint increasing more than 50% over the past two years. Five new restaurants opened in FY 2023, and a further eight were acquired in May 2023. Digital and delivery remain key growth drivers for all our business units. Convenience is also key for Taco Bell, with a high delivery mix and greater accessibility supporting brand awareness and trial.
In FY 2023, Collins Foods delivered record revenue of almost AUD 1.3 billion, up 14.2% over prior year, due to our scaling footprint and growth across all business units. Topline growth, combined with operational efficiencies and cost mitigation initiatives, helped to alleviate some of the significant cost inflation across the group, with underlying EBITDA down 1.2% to AUD 205.1 million. Underlying NPAT decreased 12.1% to AUD 51.9 million. Statutory NPAT was impacted by a non-cash accounting charge, which was taken to impair the remainder of Taco Bell. The company continued to be highly cash generative, with AUD 146.2 million in operating cash flow, facilitating investment in new restaurants, in remodels, and acquisitions.
Taking into consideration Collins Foods' operating cash flow, strong balance sheet, strength of the business, and growth opportunities, the board was pleased to declare a fully franked dividend of AUD 0.15 per share, bringing the total FY 2023 dividend to AUD 0.27 per share, fully franked, in line with prior year. While cost inflation for some commodities is beginning to moderate, margin pressures are likely to remain for most of the coming year. Collins Foods is well positioned to navigate these challenging conditions, with positive same-store sales growth across all 3 business units in the first seven weeks of FY 2024, and a strong program of margin support initiatives across energy, supply chain, and menu pricing. KFC Australia EBITDA margin, pre-AASB 16, is expected to remain broadly steady in FY 2024, with improvement closer to historical levels expected in FY 2025.
Despite a continued high inflationary environment in Europe, our European business is targeting limited EBITDA margin contraction in FY 2024. Collins Foods continues to execute on its long-term growth plans, with 13-18 new restaurant openings planned across the group in FY 2024. Collins Foods continued its commitment to making a positive impact and delivering sustainable growth, progressing initiatives across people and communities, planet, and governance. Our positive impact report, published separately, outlines Collins Foods' Australian achievements over FY 2023, including increased safety and well-being for employees, more sustainable operations, and a greater cyber and data management capability. While we're proud of our progress over the past three years, we've recently appointed a group ESG and sustainability manager to further strengthen our environmental, social, and governance program.
Collins Foods is partnering with EY Australia on a materiality assessment to identify and better understand key sustainability priorities, impacts, and opportunities within a dynamically changing landscape. A climate risk assessment and action plan are also being developed to deliver greater alignment with the Task Force on Climate-related Financial Disclosures, otherwise known as TCFD, recommendations. During the year, Collins Foods welcomed highly credentialed executive, Nicki Anderson, to the board as a new independent non-executive director and a member of the Audit and Risk, and Remuneration and Nomination Committees. Nicki is an excellent addition to the board, bringing more than 25 years of leadership experience across strategy, sales, marketing, customer experience, and innovation within the global food, beverage, and consumer goods sectors.
On behalf of my fellow directors, I'd also like to acknowledge Russell Tate, who, after 12 years, is retiring from his non-executive director role at this AGM, in line with our succession plans. Russell's contribution to the board has been significant, notably leading the company as chair from its listing through to March 2015. On behalf of the board, I'd like to thank Russell for the many years of service he has provided to Collins Foods and the counsel, advice, and support he's provided me, other directors and the executive team over this period. We truly wish Russell all the very best for the future. On behalf of the board, I'd also like to thank our more than 17,000 employees in Australia, Netherlands, and Germany, for their continued hard work and dedication.
Our solid FY 2023 performance amidst a challenging landscape is a testament to our entire team and highly skilled leadership, who continue to raise the bar on creating unmatched experiences for our customers. I'd also like to acknowledge my other fellow directors for their valuable input and guidance throughout the year. Finally, thank you to our shareholders for your support. Your company is well-placed to navigate the volatility ahead, operating two of the world's most recognizable brands within the highly resilient, value-centric QSR industry. I'd now like to welcome Drew O'Malley, as Managing Director and Chief Executive Officer, to address you. Drew?
Thank you, Robert, and good morning, everyone. In FY 2023, Collins Foods continued to execute on its sustainable growth plans across all three business units while managing cost inflation during difficult trading conditions. The company achieved this result through its restaurant, Restaurants Done Better approach to operations and customer service, focusing on its value credentials and harnessing the strength of the powerhouse KFC brand to lead the sector on value, quality, and taste at a time when this really matters. KFC's strong top-line growth in Australia and Europe reflected the resilience and trust in the brand during these challenging economic conditions. KFC operations in Australia strengthened in FY 2023 through an increased footprint and rollout of innovative marketing initiatives that are driving mainstream appeal. While the company's KFC Europe business delivered impressive double-digit revenue and same-store sales growth, even with significant inflationary pressures in the region.
New brands take time to gain traction, even those with the appeal of Taco Bell. Collins Foods is expanding the brand presence of Taco Bell in Australia by investing in marketing activities and campaigns. The company is also being backed by Taco Bell International, which is part of Yum, to raise awareness of the brand and increase sales so the Taco Bell brand can deliver on its potential in this market and achieve scale within the next few years. As you heard from Robert, Collins Foods delivered another solid financial performance in FY 2023. All business units achieved revenue growth, with KFC Europe seeing double-digit revenue and earnings growth, and KFC Australia surpassing the AUD 1 billion sales milestone. Group revenue increased 14.2% to almost AUD 1.35 billion, underpinned by solid KFC same-store sales growth and the contribution of 21 additional restaurants.
Statutory EBITDA was AUD 197.9 million, while underlying EBITDA was AUD 205.1 million, reflecting pressures on supply chain, labor, and inflationary costs. Statutory NPAT was AUD 11.3 million, and underlying NPAT came in at AUD 51.9 million due to a non-cash accounting impairment of AUD 36.7 million for Taco Bell. Operating cash flow decreased to AUD 146.2 million from AUD 156.3 million in FY 2022 as the company increased its investment in growth initiatives. Net debt remains at a comfortable level of AUD 212.2 million, reflecting a net leverage ratio of 1.47 in pre-AASB 16 numbers. The KFC Australia brand is becoming more salient for customers as we continue to expand both its physical and digital presence.
In FY 2023, our growing KFC Australia business delivered more than AUD 1 billion in revenue, up 10% on prior year, driven by an expanding network of 272 restaurants and solid same-store sales growth. Same-store transactions remained broadly flat on prior year, in line with the overall Australian QSR market. Same-store sales rose 5.8% over the prior period, reflecting strong growth in e-commerce, increased availability through Uber Eats, and a higher ticket. The H2 of FY 2023 saw almost a quarter of all sales come through our growing digital and delivery channels, up more than 7% over the same period last year.
Increased accessibility has been a key driver of this growth, with the brand now available through all major delivery aggregators, while new digital software has improved personalization of offers through the KFC app, with a great take-up of these promotions. To accommodate our changing order mix and evolving customer trends, we are embedding convenience and innovation in new builds with dedicated delivery driver entrances and waiting areas, increased kiosk installation, as well as enhanced design elements. These improvements were also rolled out to 47 remodeled restaurants during the year. At the same time, we're investing in back-of-house technology to improve efficiency and speed and to reduce wastage. While Australia currently has the highest penetration of KFC per capita of any global market, we still believe there is room to grow, with plans to open a further nine-12 restaurants over the coming year.
This is ahead of the pace required under our development agreement with Yum. Underlying EBITDA was AUD 201.6 million, with EBITDA margin declining from 21.6- 19.2%. In pre-AASB 16 numbers, that's a shift from 17.4- 15%, all of which reflects the impact of inflation and supply chain pressures. KFC Europe was a standout for the business in FY 2023, especially considering the especially challenging local market conditions in which annual inflation more than tripled, energy costs reached record levels, and there were sizable increases in labor and food costs. Same-store sales grew 13.9%, and revenue increased 31% to AUD 249.5 million, as Collins Foods was able to utilize marketing activities through the Netherlands Corporate Franchise Agreement or CFA.
Both Netherlands and Germany saw solid transaction volume increases as well as a higher ticket. The growth in sales was made possible by a margin strategy that prioritized value initiatives, and this sales growth helped mitigate some of the significant cost pressures. With our increased marketing and operational control under the Netherlands CFA, both brand consideration and conversion increased in FY 2023, as did our value metrics versus competitors. As in Australia, innovation is key in our product strategy, with KFC Netherlands' veggie platform, one of the highest in the world. Digital channels at double-digit levels are key to our convenience strategy, with improvements made to kiosk delivery, and the introduction of a new app during the year. Underlying EBITDA grew 19% to AUD 32.8 million on a post AASB 16 basis.
The EBITDA margin contracted from 14.5- 13.2%, noting that the pre-AASB 16 EBITDA margin of 6.6% was consistent with prior year. Collins Foods now accounts for 64% of the total KFC footprint in the Netherlands, with our 56 current restaurants. This growth is in line with the Netherlands CFA, which targets up to 130 net new restaurants from Collins Foods and sub-franchisees by 2031. Collins Foods is seeing support for our leadership from sub-franchisees in the Netherlands, which was bolstered by our award of Franchisee of the Year for Western Europe by. The company continues to look for more opportunities to further increase market share in the Netherlands, given the attractive growth opportunities that we see in this market. Turning to Taco Bell.
Collins Foods has initiatives in place to generate more customers for its 26 Taco Bell restaurants in Australia through a metro cluster strategy that focuses on delivery and marketing that drives more consumer trial and engagement. They feature the value of iconic, cravable Taco Bell products at key price points and are based on improved product quality, achieved through increased engagement with local suppliers to create flavor profiles to suit local tastes. Taco Bell saw revenue growth of 36.1% to AUD 48.7 million due to the opening of eight new restaurants across Australia in FY 2023. Same-store sales improved over the H2, in part due to the high 25% delivery mix and the successful rollout of Uber Eats, but remained down 4.8% on a full year basis.
EBITDA profitability at restaurant level was AUD 2.8 million, a decrease of AUD 1.2 million from FY 2022, and underlying EBITDA saw a loss of AUD 1.5 million. This loss was expected as Collins Foods continues to invest in Taco Bell's growth initiatives. Sizzler Asia rebounded as operating conditions normalized, with royalty revenue up 45.8% to AUD 4.1 million, generating EBITDA growth of AUD 2.9 million, an increase of more than 70% on prior year. The Sizzler Asia business, considered non-core to our strategy, was sold for SGD 20.2 million under an agreement with a subsidiary of the listed Thai company, Minor International. The sale was on a cash-free, debt-free, and working capital neutral basis and was completed last month.
The funds received from the sale of Sizzler Asia were effectively redeployed to support the expansion of our high-growth European operations. We're proud of the fact that Collins Foods' positive impact strategy has some of the Australian QSR industry's most substantial environmental, social, and governance targets for a restaurant operator of our size. Over the year, we continued to work towards these targets under the banners of people and communities, planet, and governance. We pride ourselves on a people-first culture and continue to create unmatched experiences for our customers and our people. We continued to regularly promote health and safety practices within our day-to-day operations to strengthen our safety culture. Enrollment in Collins Foods Giving was stable at 36%, despite cost of living pressures also impacting our team, with the Collins Family Fund granting AUD 275,000 to employees experiencing challenging circumstances.
Importantly, our people can now share in our success under a newly launched ownership share scheme. On sustainability, Collins Foods decreased its greenhouse gas emissions across its operations by 12.7% in FY 2023, which is down 20.3% since FY 2021, despite continuing to grow its restaurant network. Solar is now installed on all available 162 drive-thru restaurants, subject to landlord and council approvals, with installations in Europe commencing next year. We reduced waste to landfill with a diversion rate of 19.6% and launched an organics waste diversion program now in 23 stores. In addition, food recovery partnerships are being rolled out to KFC restaurants in Tasmania, Queensland, and New South Wales.
Demonstrating our commitment to best practice ESG standards, Collins Foods has appointed a group sustainability and ESG manager to strengthen our capability in this area and ensure our growth remains sustainable. Moving on to the outlook. Inflation continues to be a very real factor in the Australian and European operating environments and is expected to impact margins for much of FY 2024.... Encouragingly, most commodities appear to be easing off of their peaks, and we have initiatives in place across energy, supply chain, and menu pricing to mitigate inflationary pressures across all three business units. These short-term headwinds have not changed our growth trajectory, and we continue to prioritize customer value to protect transactions and long-term brand strength. Improving brand health and a recent uptick in market share has validated that this is the right approach in the current economic climate.
At the same time, e-commerce remains a key growth driver, and we continue to increase accessibility of KFC and Taco Bell to meet customers' increasing demand for convenience. I'd like to take this opportunity to acknowledge every member of the Collins Foods team for their enormous contributions in FY 2023. Our continued growth in a challenging economic environment is directly attributable to the hard work of our passionate team members. I'd also like to say a special thank you to Group CFO Nigel Williams, who left the business in mid-July. Nigel has been a valued part of our growth story over the past eight years, and we wish him all the best for the future. Finally, thank you to all of you, our loyal shareholders, for your support over the past year.
We look forward to executing on our sustainable growth plans for our KFC and Taco Bell business units and growing shareholder value, confident that our best days are ahead of us. I'll now hand the meeting back to Robert.
Thanks, Drew. 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, to type a question, press the Q&A icon, type your question into the text box. Once you've finished 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. Are there any general questions, not related to the business of the meeting, from shareholders? I'd like to remind shareholders that the poll will be closed at the end of question time. If you have not yet done so, please submit your votes.
Ladies and gentlemen, as indicated at the beginning of the meeting, in the notice of meeting date, the 28th of July, 2023, the resolutions set out in that notice are taken as read. The proxy results... There we go. For items two-four, should now be displayed on your screen. As you look through these proxy results, you'll notice that all resolutions have been passed. The proxy results for items five-seven should now be displayed on your screen. As you look through these proxy results, you'll see that all resolutions have been passed. The 2023 annual report contains the financial report, the directors' report, and the independent auditors' report.
The financial report has been approved by the directors and audited by Collins Foods Limited's independent auditors, PwC, and as required by Section 317 of the Corporations Act, are now laid before the meeting, the financial report, the directors' report, and the independent auditors' report for the financial period ended 30 April 2023. Thank you. Now, are there any questions relating to... I'll just approach. Are there any questions for the auditors, PwC, regarding conduct of the audit, preparation, 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? Thank you. I'll now turn to Resolution 2, regarding the election of Nicki Anderson as a director of the company. Are there any questions relating to the election of Nicki Anderson as a director from shareholders?
... There are no questions online in relation to this Resolution, Chair.
Thank you, Ron. I'll now turn to Resolution 3, regarding the re-election of Christine Holman, who, being a director of the company, retires and being eligible, offers herself for re-election. Are there any questions relating to the re-election of Christine Holman as a director?
There are no questions online in relation to this Resolution, Chair.
Thank you. Turning to Resolution 4, seeking renewed shareholder approval of the amended terms for the Collins Foods Long Term Incentive Plan. Any questions relating to Resolution four?
Thank you, Chair. No questions online in relation to this Resolution.
Thank you. Are there any questions relating to Resolution 5, seeking shareholder approval for the grant of performance rights to Drew O'Malley?
No questions online in relation to Resolution 5, Chair.
Thank you, Ron. I'll now turn to Resolution 6, regarding adoption of the remuneration report for the 2023 FY. Are there any questions regarding Resolution 6, relating to the adoption of the remuneration report?
No questions online in relation to Resolution 6, Chair.
Thank you. Lastly, turning to Resolution 7, seeking shareholder ratification of the issue of fully paid ordinary shares to employees under the recently introduced Collins Foods Ownership Share Plan. Are there any questions regarding Resolution 7, relating to the ratification of previous issued shares under the Ownership Share Plan?
There are no questions online in relation to resolution 7.
Thanks, Ron. Are there any other questions anyone present or online wish to put before I bring the formal business of the meeting to an end?
There are no questions in relation to general business online, Chair.
Thank you. In that event, that brings the formal business of the meeting to an end. As indicated, I'll shortly close the poll. If you haven't yet voted or you wish to change your vote, having had an opportunity to hear questions and the response to those questions, and of course, there haven't been any, please do so now. Members of the Computershare team will now collect the voting cards here in Brisbane, and I'll, we'll allow some time for the collection of those voting cards. Can I close the poll? Very well. I declare the poll closed and confirm, as indicated earlier in the meeting, that the final results will be announced via the ASX once those final results are known, and I do thank you very much for your attendance. Have a great day.