Cafe de Coral (0341) yesterday warned its net profit for the fiscal year ended March 2020 is expected to fall by 85 percent to 90 percent, mainly due to a decline in revenues and higher operating costs amid social unrest and the Covid-19 pandemic. The local fast-food chain operator saw its net profit slump by 34.5 percent to HK$149.7 million for the six months ended September last year, affected by anti-government protest which erupted in June last year. Given its net profit of HK$590 million for the last fiscal year, an expected 90 percent decline means Cafe de Coral will incur a loss of more than HK$90 million in the second half. In the fourth quarter of the fiscal year, its profit decline deepened and even recorded a deficit amid the Covid-19 epidemic, the company said. Cafe de Coral also said it has implemented cost-control measures on rent, labor and food, and is "stringently managing working capital to ensure a healthy cash flow and strong cash position to weather the currently difficult operating environment."

Source: The Standard April 26, 2020 19:07 UTC