Café de Coral (341) H2 2024 earnings summary

Executive summary

• Revenue rose 8.3% year-over-year to HK$8,691.4 million, with profit attributable to shareholders up 199.5% to HK$330.5 million, or 4.8 times last year’s profit excluding prior government subsidies.

• Gross profit margin improved to 11.4% from 8.8% last year, driven by cost control, productivity gains, and operational fine-tuning.

• All Hong Kong business segments (QSR, Casual Dining, Institutional Catering) and Mainland China operations delivered better results, with record new store openings in the Greater Bay Area.

• Leadership transition completed, with a new CEO appointed and a decade-long succession plan finalized.

Financial highlights

• Revenue: HK$8,691.4 million (up 8.3% year-over-year).

• Profit attributable to shareholders: HK$330.5 million (up 199.5% year-over-year).

• Gross profit margin: 11.4% (vs. 8.8% last year).

• Basic EPS: HK$0.57 (up from HK$0.19).

• Final dividend proposed: HK42 cents per share; total payout ratio 101.0%.

Outlook and guidance

• Management remains optimistic about long-term growth despite economic headwinds and shifting consumer patterns.

• Focus on margin optimization, digitalization, and network expansion in both Hong Kong and the Greater Bay Area.

• Continued investment in technology, product innovation, and customer engagement strategies.