Financial Performance - The company's revenue increased by 5.9% to HKD 2,748.4 million, benefiting from a net addition of 14 restaurants and slight growth in comparable restaurant revenue in Hong Kong [3] - Annual profit, excluding government subsidies, rose by 34.2% to HKD 117.0 million [3] - Revenue from markets outside Hong Kong increased by 25.1% year-on-year, with significant performance in Japan [16] - Revenue from the Hong Kong market increased by 4.8% year-on-year to HKD 2,570.9 million, driven by the net addition of several new restaurants [39] - The group recorded total revenue of HKD 2,748.4 million for the fiscal year 2024, an increase of 5.9% compared to fiscal year 2023 [37] - The group achieved a compound annual revenue growth rate of 11.0% over the past five fiscal years, despite challenges from COVID-19 and intense competition in the restaurant industry [39] - The company's total revenue from Hong Kong was HKD 2,145.5 million, showing a slight increase of 0.3% compared to the previous year [105] - The company's revenue increased by 5.9% from HKD 2,594.6 million in FY2023 to HKD 2,748.4 million in FY2024, driven by an increase in the number of operating restaurants [109] Profitability and Margins - The company's operating profit margin, excluding government subsidies, improved to 4.3% from 3.4% year-on-year [4] - The operating profit (non-HKFRS measure) for the year was HKD 459,044, reflecting a 3.1% increase from HKD 445,424 in the previous year [82] - The operating profit margin (non-HKFRS measure) decreased to 16.7% from 17.2% in the previous year [102] - The operating profit in Hong Kong remained stable at HKD 473.2 million, compared to HKD 475.2 million in the fiscal year 2023 [69] - The annual profit, excluding government subsidies, rose by 34.2% year-on-year to HKD 117.0 million, while including subsidies, the profit was HKD 118.6 million (FY2023: HKD 141.0 million) [37] Dividends and Shareholder Returns - The board recommended a final dividend of HKD 0.059 per share, resulting in a total annual dividend of HKD 0.089 per share, with a payout ratio of 100% [3] - The total dividend for fiscal year 2024 is proposed at 8.9 HKD cents per share, down from 10.5 HKD cents in fiscal year 2023, maintaining a payout ratio of approximately 100% [29] - The proposed final dividend is HKD 0.059 per share, down from HKD 0.105 per share in the previous year [195] Cost Management - The restaurant employee cost as a percentage of revenue for the fiscal year 2024 is maintained at a stable level of 25.3%, compared to 24.8% in fiscal year 2023 [18] - Overall employee cost as a percentage of revenue for fiscal year 2024 is 32.4%, up from 31.9% in fiscal year 2023 [18] - The group maintained the cost of food and beverage as a percentage of revenue at 23.6%, a slight improvement from 23.9% in the fiscal year 2023, through strategic pricing adjustments and enhanced procurement strategies [66] - Employee costs increased by 7.3% to HKD 889,506, up from HKD 828,579 in the previous year [95] - The cost of food and beverages rose by 4.5% to HKD 648,136, compared to HKD 620,318 in the previous year [82] Strategic Initiatives - The company is optimistic about its franchise business in the Philippines, which is seen as a key entry point into the Southeast Asian market [11] - The company aims to optimize profitability through brand building, marketing promotion, menu localization, and store upgrades in overseas markets [16] - The company has established an ESG strategy focused on community support, employee welfare, and environmental initiatives [14] - The company plans to invest in management teams and talent development to achieve growth targets, while enhancing its POS and CRM systems for digital transformation [33] - The company has established a joint venture with ST Group Food Industries Holdings Limited to expand its franchise business, leveraging ST Group's extensive network in Australia and New Zealand [32] Market Expansion - The company strategically closed 4 underperforming restaurants in Shenzhen and shifted expansion focus to Guangzhou and second-tier cities in the Greater Bay Area, where operating costs are lower [21] - The company opened 10 new restaurants in the Greater Bay Area during fiscal year 2024, with better profitability compared to those in Shenzhen, indicating the effectiveness of the new strategy [21] - The group plans to open 50 franchised brand restaurants in Hong Kong over the next five to seven years to adapt to changing consumer preferences [49] - The group has entered into a joint venture agreement to expand into the Australian and New Zealand markets, with plans to open its first restaurant in Melbourne in 2024 [50] - The group is exploring franchise opportunities in the Philippines to establish a strong foothold in the Southeast Asian market [77] Operational Efficiency - The group has successfully improved cost efficiency through various measures, including using alternative ingredients and reducing food waste [46] - The company plans to continue investing in technology to enhance POS systems, CRM systems, and supply chain management systems to improve customer experience and operational efficiency [80] - The company aims to strengthen its global procurement strategy to reduce material costs while adhering to ESG strategies [102] Customer Insights - Average customer spending in Hong Kong was HKD 38,578, while in mainland China it was HKD 8,974, and in Japan it was HKD 24,023 [62] - The group aims to enhance market penetration by expanding its product offerings, including the launch of innovative afternoon tea and hot pot series [68] - The group plans to strengthen partnerships with banks and food delivery platforms to launch more promotional activities and enhance brand awareness [72] Financial Position - The company maintains a strong financial position with ample cash reserves to explore potential investment and partnership opportunities for faster growth [34] - Cash and bank balances remained relatively stable, decreasing from 1,375,650 thousand HKD in 2023 to 1,351,523 thousand HKD in 2024, a decline of about 1.8% [137] - The company had no interest-bearing bank and other borrowings as of March 31, 2024, consistent with the previous year [199] - The company's lease liabilities increased from 351,590 thousand HKD in 2023 to 377,829 thousand HKD in 2024, an increase of approximately 7.4% [137] Governance and Compliance - The company has maintained a high level of corporate governance and has complied with the applicable codes under the Hong Kong Stock Exchange [178] - The company has confirmed compliance with the standard code for securities trading by all directors during the fiscal year [179]
谭仔国际(02217) - 2024 - 年度业绩