Café de Coral (341) H2 2025 earnings summary

Executive summary

• Revenue decreased by 1.4% year-over-year to HK$8,568.3 million, with profit attributable to shareholders down 29.6% to HK$232.7 million, mainly due to a severe downturn in the restaurant sector in both Hong Kong and Mainland China.

• Excluding fair value loss on investment properties, profit attributable to shareholders declined by 25.2%.

• The Group focused on value offers, menu adjustments, digitalisation, and loyalty strategies to drive demand and protect profit.

• Institutional Catering returned to normal with steady profit, and Mainland China operations maintained stable margins and network expansion.

• A final dividend of HK25 cents per share is recommended, with a total payout ratio of 99.7%.

Financial highlights

• Revenue: HK$8,568.3 million, down 1.4% year-over-year.

• Profit attributable to shareholders: HK$232.7 million, down 29.6% year-over-year.

• Gross profit margin fell to 10.4% from 11.4% last year.

• Basic EPS: HK41 cents, down 28.1% year-over-year.

• Final dividend: HK25 cents per share; total dividend for the year: HK40 cents per share.

Outlook and guidance

• The Group expects continued volatility in global and regional economies, with Hong Kong shifting to a new norm and more volatile sales volumes.

• Plans to adapt with flexible business models, focus on value, digitalisation, and optimising the store network.

• Emphasis on cost control, productivity, and technology to protect margins.

• Confident in leveraging market leadership and multi-brand portfolio to thrive in the evolving environment.