Fairwood sees profit jump 152.4% to US$197m
The group said take-out sales and government subsidies helped.
Hong Kong fast food operator Fairwood announced its profit skyrocketed by 152.4% to approximately HK$153.6 million (US$19.7 million), thanks to increases in take-out and Click & Collect sales and various government subsidies.
In its annual results for the year ending 31 March 2021, the group also cited “improved” productivity and efficiency, “proactive” cost management for the improved margins, despite revenue declining by 12.7% year-on-year to HK$2.6 billion compared to HK$3 billion.
“The times when full anti-pandemic measures were operating in the year saw a fall in Fairwood’s revenues, but as measures eased, revenues picked up significantly. Dine-in sales at Fairwood restaurants were down across the board, yet significant increases in take-out sales and sales from our ‘Click and Collect’ ordering platform helped compensate,” Fairwood executive chairman Dennis Lo said.
Same-store sales in Hong Kong fell by approximately 15% for the year. In periods when restaurants were required by the government to close at 6:00 pm, they moved their dinner menu availability one hour earlier, to 5:00 pm. Costs were also reduced by flexible staff scheduling and negotiations with landlords and suppliers.
Its Taiwan Bowl restaurants were “especially resilient”, and the group expects to further expand the brand when circumstances improve.
In mainland China, same-store sales were down by approximately 27%. The group opened four new stores in the year, whilst also completing the localisation of its management and operational team.
As of 31 March 2021, the group had a total of 156 stores in operation in Hong Kong, including
145 fast food stores and 11 specialty restaurants in Hong Kong, and 16 stores in China.
Fairwood’s Board recommended payment of a final dividend of HK60.0 cents (2020: HK50.0 cents) per share for the year ended 31 March 2021. Together with the HK30.0 cents interim dividend of HK30.0 cents per share paid during the year, the total dividend for the year ended 31 March 2021 was at HK90.0 cents.