Gayety third quarter profit up 92.5% to HK$10.6mn

The restaurant chain’s revenue up 28.7% to HK$194.39mn.

Gayety Holdings Limited (“Gayety”), a local multi-branded Chinese restaurant group offering specialised menus and catering for large-scale wedding banquets and events, announced its unaudited third quarter results for the nine months ended 30 September 2011 (“Q3 FY2011”).

During the period under review, the Group achieved remarkable results with profit attributable to owners of the Company surging by 92.5% to approximately HK$10,598,000 (Q3 FY 2010: HK$5,505,000), as well as a net profit margin of 5.5%. The Group’s revenue also rose by 28.7% to approximately HK$194,391,000 (Q3 FY 2010: HK$151,024,000). The significant increases in profit attributable to owners of the Company and revenue were mainly due to the strong growth in comparable restaurant sales, especially when the newly-opened restaurants in Shatin and Tsuen Wan under the brand “Red Seasons Aroma Restaurant” began to contribute more to the Group. The management’s constant effort in creating innovative and delicious dishes as well as a series of effective marketing strategies have also been key to the Group’s success, according to a Gayety report.

The Group incurred a one-off listing expense of approximately HK$3,683,000 in Q3 FY2011. Excluding this non-recurring expense, the Group’s profit attributable to owners of the Company rocketed by 159.4% while net profit margin increased to 7.3%.

Mr Wong Kwan Mo, Chairman of Gayety said, “Continuing the strong performance after our interim results and our successful listing on the GEM Board of the HKEx on 8 July, I am pleased with the Group’s continued growth in Q3 FY2011. This is testimony to our hard work and dedication to provide innovative, delicious dishes with value-for-money to our customers.”

Moving forward, the Group will look for suitable sites with high traffic flow and reasonable rentals to expand its restaurant network. A new brand “Red Royalty Banquet” will be introduced to the public with the opening of the Group’s sixth restaurant in Yuen Long. The internal decoration of this restaurant will be finished soon and the Group is confident that it can be opened in the fourth quarter of 2011 as scheduled. With a seating capacity of 120 banquet tables, targeting customers looking for premium dining and deluxe Chinese wedding banquet and dining services, it will become another major income stream of the Group. Besides, the Group will open its seventh restaurant under the Red Seasons Aroma Restaurant brand before 2013 covering an area of approximately 1,000 square metres with a seating capacity of about 40 banquet tables.

Mr Wong concluded, “As the local catering industry continues to flourish, we are positive about the business performance in FY2011. In addition to expanding our network, we will also devote more effort to providing quality services, offering new and appetising yet affordable dishes as well as adopting innovative marketing strategies to strengthen our business foundation. Combined with our strategy for precise development and effective management system, we are determined to accelerate the Group’s profit growth to new heights.