Hong Kong corporate restaurateur Cafe de Coral Holdings says its profit quadrupled in the year to March thanks to an easing of Covid-related restrictions.
In a stock-exchange filing, chairman Sunny Lo Hoi Kwong said it expects to record a profit attributable to shareholders of about HK$350 million (US$45 million) compared to HK$73.6 million ($9.5 million) the previous year.
“During the year, the mandatory social-distancing restrictions on in-restaurant dining and the dampened consumer sentiment amidst the Covid-19 pandemic had severe impact on the group’s business and operations, resulting in a significant decrease in the group’s revenue recorded for the year,” said Kwong.
The group credited the government for its pandemic relief and subsidies, and the way staff responded during an extremely difficult environment for the stronger result.
Among the reasons for the increased surplus was improved productivity, efficiency and cost-control measures and the implementation of upgraded technology to win more takeaway and delivery business.
The Hong Kong Housing Authority and Hong Kong Housing Society were among some of the landlords to grant temporary rental concessions during the year. “The group continues to discuss with landlords for more favourable leasing terms, with a view to improving the group’s operating costs amidst the challenging business environment,” said Kwong.