Café de Coral Group posts 34.5% profit loss
The profit loss came despite a slight increase by 1.6% in revenues.
Café de Coral Holdings’ profit attributable to equity holders decreased 34.5% to HK$149.7m (US$19.1m) for the six months ended 30 September 2019 compared to HK$228.7m (US$29.2m) in 2018, citing “unattained growth” amidst “weakened market sentiment.”
This came despite a slight increase of 1.6% in group sales to HK$4.26bn (approx. US$544m).
“Weak market sentiment impacted our quick service restaurant business and casual dining brands, particularly the dinner segment and weekend sales, as well as outlets located in shopping and commercial areas,” the group said in a recent release.
“We launched more value meals and promotions to maintain same store sales and defend market share, in spite of rising operating costs like labour cost and rental expenses. This has resulted in a decline in profit in the near term,” it added.
Amidst intensifying competition, the group’s QSR and catering divisions have posted a joint 2.2% increase to HK$3.13bn (US$399m) in the same period.
Meanwhile, its Southern China QSR segment’s revenue rose by 9.6% to RMB 516.0 million (US$73.5m). Same store sales were also up by 6% attributable to “enhanced product quality, successful marketing and the continual growth of O2O take-away services.”
The group operates 368 outlets in Hong Kong and 107 outlets in China.
