Press Releases

27 November 2017

Interim Results Announcement For The Six Months Ended 30 September 2017

For the first six months of 2017/18, the Group reported increased revenue but a decline in profits. This was partially offset by the growth of our operations in Mainland China, which recorded remarkable performance in terms of same store sales and profit growth.

The decline in profitability of our Hong Kong operations for the period was due in large part to the investment we made in people for our quick service restaurant (QSR) business, the Group’s core business. This was necessary for attracting and retaining talent in a highly competitive labour market as well as for our continuing business development in the sector. Our investment in people resulted in significant improvements in our staff retention rate, although it also led to increases in manpower expenses during the review period that were higher than the pace of our revenue growth.

For the review period, our key achievements by business division included the following:

  • In our QSR and institutional catering businesses, we continued with our branch network expansion strategy by opening more new shops than in previous years, and made improvements in overall customer satisfaction by enhancing the customer journey and product quality.
  • In our casual dining business, we adjusted and repositioned our portfolio, which helped to achieve positive results for our established brands. Our homegrown and franchised brands continued to enjoy growing popularity among customers.
  • In Mainland China, following our previous efforts to consolidate our branch network there, our product and promotion strategies began to pay off with strong growth in same store sales and profit.

Despite the lower than expected profitability for the period, we nevertheless remain confident that our investments will ultimately bring better returns. With a strong management team, well-recognised brands and an expansion strategy for our key markets of Hong Kong and Southern China, we are optimistic about our ability to achieve improved results in 2018.

Highlights

  • The Group’s revenue for the first six months of 2017/18 increased 6.2% to HK$4,128.1 million. Profit attributable to shareholders amounted to HK$205.7 million, 11.3% lower than the corresponding period last year.
  • The quick service restaurants and institutional catering businesses in Hong Kong expanded their network and continued to strengthen the workforce for business growth. 
  • Operations in Mainland China recorded outstanding growth in same store sales and profit.
  • The brand portfolio of casual dining business was further enhanced to make a greater contribution to the Group’s business growth.
  • An interim dividend of HK18 cents per share (2016: HK18 cents) was declared.

Please click the below link for the announcement:

http://www.cafedecoral.com/eng/investor_relations/announcements/images/Announcements2017/e_20171127.pdf

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