Cafe de Coral Holdings (00341.HK) announced that for the fiscal year ending March 31, 2024, the group's annual revenue increased to HK$8.6914 billion. The attributable profit to shareholders was HK$330.5 million (2022/23: HK$110.4 million). Excluding government pandemic subsidies, the attributable profit to shareholders was approximately 4.8 times that of the previous year, and it is proposed to distribute a final dividend of HK42 cents per share, with a total dividend payout ratio of 101.0% for the year.

Despite facing challenges in the business environment in Hong Kong and mainland China, the group's performance has significantly improved in the fiscal year. The group focused on optimizing business models and operations, and the gross margin increased significantly to 11.4%.

The performance of various businesses (fast food, leisure dining, and institutional catering) in Hong Kong has improved compared to the previous year. Fast food has worked to strengthen product design, enhance cost-effectiveness, and launch more brand promotions and marketing activities. Cost control, employee productivity improvement, digitalization, and automation have also helped improve profitability during the year.

The mainland China business has significantly recovered, with strong rebound in same-store sales and stable profit margins. The store network continued to expand, and the number of new stores during the year reached a historic high, laying a solid foundation for sustainable growth of the entire Greater Bay Area business.

Given the slower-than-expected economic recovery and growth in inbound tourist numbers, combined with factors such as citizens' consumption in the north, pressure on the operating environment in the second half of the year has increased. Despite these challenges, the group remains optimistic about long-term growth prospects and will continue to improve its competitive business model established during difficult times.