Food operator Fairwood sees profit soar 152.4% to $153.6m

This was driven by increased productivity and cost management amongst others.

Local food operator, Fairwood Holdings Limited, reported its profit rose 152.4% to $153.6m in the year ended March 2021, despite challenges posed by the pandemic.

The Group saw a 12.7% year-on-year decrease in revenue to $2.64b, compared to $3.03b in the previous year.

Fairwood attributed the profit increase to its improved productivity, efficiency, and proactive cost management. The Group also benefited from subsidies from the Hong Kong government during the year.

“The times when full anti-pandemic measures were operating in the year saw a fall in Fairwood’s revenues, but as measures eased, revenues picked up significantly,” Dennis Lo, executive chairman of Fairwood, said.

“Dine-in sales at Fairwood restaurants were down across the board, yet significant increases in take-out sales and sales from our ‘Click and Collect’ ordering platform helped compensate.”

The board recommended a payment of HK60 cents per share final dividend for the year ended March 2021. In total, the dividend distributed for the year amounted to HK90 cents per share, up from HK73 cents per share previously.

Fairwood is now seeing sales pick-up as customers in Hong Kong return to restaurant dining after the government eased restrictions.

“We are optimistic that, assuming the pandemic is kept under control, the Group’s performance will again reflect its underlying strengths and its strong historic reputation in Hong Kong, and we will continue to grow on the Mainland,” Lo said.