Restaurant and catering group Cafe de Coral Holdings managed to grow its revenue 2.9 per cent to HK$7.57 billion (US$975.7 million) despite a challenging financial year in a weakening economy.
The group says it continued to perform well in its quick-service restaurants and institutional catering businesses with steady growth in the fast casual and casual dining sector despite setbacks in Mainland China.
With a diversified portfolio of strong brands and a successful leadership transition during the year, the group says it is well positioned for long-term sustainable growth. It is committed to building its brands on the mainland.
With falling retail sales, the F&B industry as a whole faced a challenging year in Hong Kong, says the group. Despite this, its Hong Kong business results achieved a 5 per cent increase in revenue to HK$6.448 billion for the 12 months ended March 31.
Hong Kong was still the top contributor to the company’s earnings, representing about 85 per cent of the total revenue for the year. There was also steady progress in its work with Japanese and Korean brand owners, with new stores including the first two Don Don Tei Japanese dining outlets in Hong Kong, and two more The Cup Korean dining concept outlets.
Solid performance continued in the group’s core quick-service restaurants (QSR) and institutional catering business. This segment accounted for 87 per cent of the group’s revenue in Hong Kong.
Other achievements included ISO 22000 accreditation (the international food safety standard) for the group’s Taipo Central Processing Centre and its central processing centre in Guangzhou.
“In my journey of more than 30 years with Cafe de Coral, the past few years have been particularly eventful and rewarding,” says incoming chairman and former CEO Lo Hoi Kwong in his first letter to shareholders.
“In my new role I will maintain the same values and philosophy laid down by our founders that have helped us grow from a small shop in Causeway Bay into a thriving network of diverse restaurants capable of withstanding changes in the market.”