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Eunice Liu
Cafe de Coral (0341) expects its net profit will increase more than five-fold up to HK$115 million for the year ended March 2023 compared to HK$21.2 million from a year ago .
The fast food chain recorded government Covid-19 subsidies of HK$40.9 million and said its Hong Kong business started to improve in the second quarter of the 2022-23 fiscal year.
However, the second half of the year was affected by the slower-than-expected pace of economic recovery in Hong Kong in the fourth quarter and the severe impact of the Covid-19 on its mainland business in the third quarter.
It was also hurt by a fair value loss on investment properties as well as an impairment loss on property, plant and equipment and right-of-use assets.
Cafe de Coral said its Hong Kong operations have made efforts to control costs in a challenging environment and successful branding and marketing campaigns had contributed significantly to sales.
Multiple initiatives in digitalization and automation also enhanced its productivity and efficiency.
On the other hand, its mainland China business saw a V-shaped recovery in sales during the last quarter when Covid control measures were relaxed.
The group said that overall, the mainland business remained healthy and achieved good progress in network expansion amid adverse market conditions.
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