Café de Coral (341) H1 2025 earnings summary

Executive summary

• Revenue for the first half of FY2024/25 decreased 1.2% year-over-year to HK$4,264.8 million, with profit attributable to shareholders down 28.2% to HK$144.0 million, reflecting a challenging economic environment and high base effect from last year.

• The downturn was driven by weak consumption in Hong Kong, outbound spending, and fierce price competition in Mainland China.

• Proactive measures included value-for-money offers, menu innovation, loyalty programs, and cost control to safeguard margins.

• Network expansion in the Greater Bay Area continued, and the group remains confident in its fundamentals and future growth as the market recovers.

• An interim dividend of HK15 cents per share was declared, unchanged from the prior year.

Financial highlights

• Revenue: HK$4,264.8 million, down 1.2% year-over-year.

• Profit attributable to shareholders: HK$144.0 million, down 28.2% year-over-year.

• Gross profit margin fell to 10.3% from 12.1% a year ago.

• Basic earnings per share: HK25.0 cents, down 27.7%.

• Interim dividend: HK15 cents per share.

Outlook and guidance

• The macroeconomic outlook remains volatile, but the group is optimistic about future prospects, focusing on value-driven offers, digitalisation, and cost control.

• Confident in maintaining and expanding market share, with expectations to return to growth as the market rebounds.

• Plans include continued value-focused offerings, digitalisation, automation, and network expansion in Mainland China.