Cafe de Coral expects near fivefold jump in annual net profit thanks to government subsidies, landlords’ support
- The company expects a net profit of around HK$350 million for the financial year ended March, compared to HK$73.6 million a year earlier
- The group is thankful for government pandemic relief and subsidies, Cafe de Coral chairman Sunny Lo Hoi-kwong said in an exchange filing
The company, which operates about 450 restaurants in Hong Kong and the mainland, including some 150 Cafe de Coral outlets, The Spaghetti House and Oliver’s Super Sandwiches, said it expects a net profit of about HK$350 million (US$45 million) for the financial year ended March 31, compared to HK$73.6 million a year earlier, it said in the statement. The results will be released in mid June, it added.
“The group is thankful for government pandemic relief and subsidies, as well as the concerted efforts of our management team and staff under the extremely difficult environment, which enabled the group to mitigate the adverse impact of the revenue decline and record a substantial increase in profit attributable to shareholders,” said Sunny Lo Hoi-kwong, chairman of Cafe de Coral.
The company said that while revenue declined because of the pandemic, government subsidies proved to be helpful, adding that some landlords including the Hong Kong Housing Authority and Hong Kong Housing Society, had granted temporary rental concessions.
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Government subsidies and support from landlords have helped the city’s catering industry, which has been hit hard by the social distancing restrictions to contain the Covid-19 pandemic since it started early last year.