It was boosted by its Mainland China casual dining operations.
Cafe de Coral Group saw its profit rose 28.9% to HK$590m from HK$459m in 2018, boosted by its revenue growth in its casual dining segment and Mainland China operations.
The group’s revenue grew 0.8% year-on-year (YoY) to HK$8.49b. However, its Hong Kong operations’s revenue dipped 0.1% YoY to HK$7.34b, no thanks to its QSR and Institutional Catering with a 0.6% YoY revenue decline to HK$6.26b. The said segment still account for most of the group’s revenue, contributing 73.8% of it.
“Although labour costs may prove to be a challenge with the incremental rise in Hong Kong’s minimum wage, the prospects for the Hong Kong QSR business remain positive,” the report stated.
Meanwhile, revenues in Mainland China were up 0.8% to HK$8.49b.
Its Hong Kong segment results rose 11.7% to HK$884.7m from HK$792.2m in 2018, as gross profit margin improved. Mainland China results grew 19.1% to HK$162m as compared to HK$136m, thanks to branch network expansion and positive same store sales growth.
Final dividend is at HK$0.65 per share, up from HK$0.63, which represents a total dividend payout ratio of 83.3% for the year.
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