Fast food and casual dining chain Café de Coral (0341) reported today annual net profit increased by 387.7 percent to HK$359.1 million, from HK$73.6 million, as a result of government pandemic relief and subsidies.

Revenue fell by 15.7 percent to HK$6.71 billion for the year ended March 31, 2021, from HK$7.96 billion the year before.

The group received pandemic relief and subsidies totalling HK$638.9 million, including HK$486.8 million under the Employment Support Scheme.

The basic earnings per share increased by 376.9 perent to HK$0.62.

The mainland business has recovered after the initial severe lockdown, the company said.

The group said it will continue to expand its network in the Greater Bay Area.

A final dividend of 28 HK cents per share was recommended.

The gross profit margin fell to 5.6 percent from 9.2 percent in the year before, mainly due to weak market sentiment and social distancing measures amid the coronavirus pandemic, the compnay reported.

Fast food restaurants revenue fell by 15.4 percent to HK$4.21 billion, as Café de Coral fast food and Super Super Congee & Noodles experienced declines in revenue, as well as negative same store sales growth of 14 percent and 11 perent, respectively, the company said.

Café de Coral fast food opened 4 new outlets and operated a network of 161 shops as of March 31, compred with 162 in 2020.

The number of Super Super Congee & Noodles outlets was 40 compared with 45 the year before.

The group said 11 QSR-brand shops are scheduled to open during fiancial year 2021/22.

Revenue from the casual dining business (including Chinese cuisine brands Shanghai Lao Lao and Mixian Sense, and western cuisine brands The Spaghetti House and Oliver’s Super Sandwiches) fell by 20.2 percent to HK$622 million, from HK$779.2 million the year before, due to the coronavirus pandemic and restrictions on dining, the company reported.

Revenue from mainland China operations grew by 10.1 percent on year to HK$1.20 billion. The South China fast food business revenue grew by 9.3 percent to 1.007 billion yuan. Same store sales growth was 2 percent, Cafe de Coral said.

Café de Coral annual profit of HK$359m cushioned by public relief, subsidies