Café de Coral (341) investor relations material

Executive summary

• Revenue for FY2025/26 was HK$8,183.1 million, down 4.5% year-over-year, with adjusted EBITDA at HK$572.6 million, a 16.7% decrease, and profit attributable to shareholders at HK$164.1 million, down 29.5% year-over-year.

• Significant recovery in the second half: profit attributable to shareholders rose 151.1% versus the first half and 32.2% compared to the same period last year, driven by swift management actions on cost and network optimisation.

• Final dividend of HK30 cents per share recommended, total annual dividend HK40 cents per share, with a payout ratio of 141.4%.

Financial highlights

• Gross profit margin declined to 9.5% from 10.4% due to weak sentiment and fierce price competition.

• Cost of raw materials and packing was HK$2,241.0 million (27.4% of revenue); staff cost HK$2,842.8 million (34.7% of revenue); rental costs HK$956.8 million (11.7% of revenue).

• Administrative expenses fell 5.3% to HK$468.2 million.

• Income tax expense decreased 30.9% to HK$22.3 million.

• Basic EPS dropped 29.3% to HK29 cents.

Outlook and guidance

• Management expects continued volatility due to global geopolitical tensions and shifting consumption patterns.

• Focus remains on agile business models, cost optimisation, digital transformation, and network rationalisation in both Hong Kong and the Chinese Mainland.

• Chinese Mainland identified as the major growth engine, with ongoing investment in brand differentiation and network expansion.