Café de Coral reported FY 2025/26 revenue of HK$8.18 billion, down 4.50% year on year, as subdued consumer sentiment in Hong Kong and intensified price competition on the Chinese mainland weighed on sales.

Profit attributable to shareholders fell 29.50% to HK$164.10 million, while adjusted EBITDA slipped 16.70% to HK$572.60 million. Nevertheless, management-driven cost controls and network optimisation produced a sharp second-half recovery: attributable profit surged 151.10% versus 1H and exceeded the prior-year second-half by 32.20%.

Gross profit margin narrowed to 9.5% (FY 2024/25: 10.4%) on keener pricing and weak tourism flows. Key expenses as a percentage of revenue were stable: raw materials and packing at 27.4%, staff costs at 34.7% and rental-related costs at 11.7%. Administrative expenses declined 5.30% to HK$468.20 million, reflecting overhead controls and process streamlining.

Segment performance diverged. Hong Kong operations contributed HK$6.72 billion, down 5.0%. Within this, Quick Service Restaurant revenue fell 5.9% to HK$4.82 billion, while Casual Dining slipped 6.4% to HK$770.40 million. Institutional Catering rose 1.0% to HK$1.01 billion, benefiting from contract renewals and new wins. Mainland China revenue eased 2.3% to HK$1.46 billion; the fast-food arm recorded a 9% same-store sales decline but preserved profitability through value offerings and selective expansion.

The Group operated 570 outlets at fiscal year-end: 375 in Hong Kong (net closure of six) and 195 in mainland China (net addition of ten). Capital expenditure moderated to HK$243 million from HK$294 million, and outstanding commitments stood at HK$283 million.

Café de Coral closed the year with cash of HK$1.12 billion and borrowings of HK$225 million, leaving the gearing ratio at nil. Available banking facilities totalled HK$932 million.

The board recommended a final dividend of HK$0.30 per share, bringing the full-year distribution to HK$0.40 per share, unchanged from the previous year and implying a payout ratio of 141.4%.

Management signalled continued focus on cost optimisation, agile store formats and disciplined expansion in the Greater Bay Area to navigate ongoing economic uncertainty and evolving consumer behaviour.