Taste • Gourmet Group announces 2018/19 annual results

May 31, 2019 - 02:32
Taste • Gourmet Group announces 2018/19 annual results

Strong revenue and net profit growth attributable to the significant increase in the number of restaurants and customers


Results Highlights:

  • Recorded a strong revenue growth of43.0% to nearly HK$307.71 million
  • Profit attributable to owners of theCompany accelerated significantly by 50.9% to HK$27.25 million
  • Total number of restaurants increased by46.7% to 22 as at 31 March 2019
  • Four new restaurants opened in April andMay 2019
  • Number of customers grew strongly by46.3% to over 2.1 million
  • Proposed a final dividend of HK$0.015 (2017:HK$0.022) per share, together with the interim dividend of HK$0.015 per share,the total dividend for the Year reached HK$0.030 cents per share
  • Dividend payout ratio reached 42.6%


HONG KONG, CHINA - Media OutReach - 31 May 2019 -Taste*GourmetGroup Limited ("Taste*Gourmet Group" or the "Company", together withits subsidiaries, the "Group"; GEM stock code: 8371) is pleased to announce itsannual results for the year ended 31 March 2019 (the "Year").


For the year ended 31March 2019, the Group recorded a revenue of approximately HK$307.71 million,representing a significant increase of 43.0% as compared with the figure in thelast year. The Group's profit attributable to owners of the Company surgedapproximately 50.9% to HK$27.25 million. Due to the overwhelming results of theYear, the board of the directors recommended a final dividend of HK$0.015(2017: HK$0.022) per share, together with the interim dividend of HK$0.015 pershare, the total dividend for the Year reached HK$0.030 per share.


Commenting the annualresults for the Year, Mr. Wong NgaiShan, Chairman and Executive Director of Taste*Gourmet Group,said, "In the past year, despite the rising costs of raw materials, labor, rentand utility services, which have adversely affected the profitability of thecatering industry, the Group has steadily improved its business throughadopting comprehensive measures of increasing revenue and reducing expenditure,thus becoming more profitable than our peers."


As at 31 March 2019,the Company owns 20 self-operated restaurants in Hong Kong, while the Groupwelcomed over 2.1 million customers during the Year, representing a significantincrease of 46.3% when compared to last year. During the Year, the Group openedand acquired seven new restaurants, namely Nabe Urawa Restaurant at the UptownPlaza in Tai Po, a dessert restaurant Sweetology, Dab-Pa Jing Chuan Hu at theMetroplaza in Kwai Fong, the first Japanese ramen restaurant under our ownbrand, Rakuraku Ramen in Lee Tung Avenue in Wanchai, and three Parkviewrestaurants from the A1 Bakery situated at the New Town Plaza in Shatin, theMetroplaza in Kwai Fong and PopWalk in Tsang Kwan O (The Parkview restaurantsituated at the PopWalk was rebranded as Xiang Hui in April 2019).

The Fiat Caffé wasreopened in October 2018 as a modern Vietnamese restaurant Madam Saigon, whichtogether with The Pho are both 50% owned by the Group and 50% owned by theLubuds Food and Beverage Group. In April 2019, the Group opened a new NabeUrawa restaurant at the Park Central in Tseung Kwan O, a new Xiang Huirestaurant at the PopWalk in Tseung Kwan O and two new Rakuraku Ramen restaurantsat the MegaBox in Kowloon Bay and the Kornhill Plaza in Taikoo.


During the Year, theGroup entered into a licensing agreement from Japan to license the rights tothe exclusive and unlimited usage for all countries outside of Japan of aJapanese ramen brand "多賀野" or "Takano". The first "多賀野" ramen restaurantwill open at the K11 MUSEA, Victoria Dockside in Tsim Sha Tsui during the thirdquarter of 2019.  In addition to theTakano Ramen restaurant, the Group has also entered into two new leaseagreements to open a Nabe Urawa restaurant at the Nina Mall II in Tsuen Wan anda Dab-pa Chinese restaurant at the Citygate in Tung Chung.  Both new restaurants are expected to openduring the third quarter of 2019.


Taking about thefuture prospects, Mr. Wong concluded,"The food and beverage sector in Hong Kong, although competitive, has ampleopportunities for the better operators. We now operate 26 outlets as comparedto 15 outlets as at 31 March 2018, representing a 73.3% increase. In addition,we have committed three new leases so far and we will continue to discuss withshopping mall landlords for new potential locations. Supporting by our stronglocal management team, the Company can accurately identify consumer tastes,fully seize the opportunities of development and bring continued success."


He added, "Believingthat excellent customer service is an essential element of a 'happy diningexperience, we developed a series of measures to motivate our staff to providebetter service. As a result, Dab-Pa Cuisine restaurant attained the 'QualityService Award 2018' for the second time after 2016 from the MTR. We believevalue-for-money is the key to our success, customers need to feel that they aregetting their money's worth of quality food as well as high standard ofservices, but we will not rest on our laurels and will continue to improve ourfood quality and services. We will also continue to seize every opportunity andstrive to maximize the interests of our shareholders and the Company."

About Taste•Gourmet Group

TasteGourmet Group is arestaurant group in Hong Kong which owns and operates 26 self-operated andjoint venture restaurants in Hong Kong currently. Since the opening of thefirst restaurant in 2007, the Group has expanded into a multi-brand business,offering a variety of cuisines, mainly Vietnamese, Japanese, Chinese andWestern cuisines. Currently we operate our restaurants under various brands,comprising self-owned brands such as La'taste Vietnamese Cuisine, Dab-pa CuisineRestaurant, Urawa Japanese Restaurant, Nabe Urawa, Say Cheese, Rakuraku RamenRestaurant; acquired brands such as Parkview Restaurant and a dessertrestaurant, Sweetology; and joint venture brands such as Madam Saigon, The Phoand Xiang Hui. A majority of these restaurants are strategically located infirst tier and/or premium shopping malls or on street levels in prime areas andcentral business district, covering Hong Kong Island, Kowloon and NewTerritories.