Cafe de Coral profit down nearly 30pc

Hong Kong fast food chain Cafe de Coral (0341) said its net profit dropped by about 30 percent for the year ending in March, as weak economic conditions and soft consumer sentiment in both Hong Kong and mainland China weighed on sales.

The company's profit declined by 29.6 percent from the previous year to HK$232.7 million, according to an exchange filing.

Revenue for the period slipped 1.4 percent to HK$8.57 billion, with Hong Kong sales down 1.4 percent to HK$7.07 billion and mainland China revenue falling 1.3 percent to HK$1.5 billion.

It declared a final dividend of 25 HK cents, down 40 percent from 42 cents a year earlier.

Cafe de Coral described the market environment as having fundamentally shifted into a "new norm," and said it is revamping its business model and store network to better respond to evolving consumer habits and market volatility.

STAFF REPORTER