Fairwood Holdings Limited reported FY26 revenue of HK$3.10 billion, broadly flat versus FY25. Despite the muted top line, profit attributable to equity shareholders climbed 16.93% year on year to HK$41.60 million, supported by disciplined cost management and lower impairment charges.

Gross profit expanded 13.18% to HK$268.44 million, lifting the gross margin by 1.0 percentage point to 8.7%. Adjusted EBITDA advanced 8.9% to HK$169.40 million. Operating profit increased to HK$84.26 million from HK$72.33 million, while finance costs eased 3.1% to HK$32.64 million.

Expense control was evident across key cost lines: rental-related expenses fell to HK$470.50 million, or 15.2% of revenue (FY25: 15.5%), and staff costs edged down 0.32% to HK$1.09 billion, representing 35.3% of sales. Food and packaging costs rose modestly to HK$763.70 million, equal to 24.6% of revenue (FY25: 24.2%).

Segmentally, Hong Kong restaurants generated profit of HK$81.64 million, up 26.5%. Mainland China operations narrowed their loss to HK$16.60 million from HK$22.48 million. Property rental and other segments contributed HK$10.26 million, a 7.3% improvement.

Basic earnings per share increased 16.93% to HK32.08 cents. The board proposed a final dividend of HK25.0 cents per share, lifting full-year distribution to HK30.0 cents and setting the payout ratio at about 94%.

Fairwood’s balance-sheet resilience strengthened: cash and equivalents rose 5.43% to HK$575.26 million, and unutilised banking facilities expanded to HK$351.07 million. Net current liabilities narrowed to HK$87.92 million from HK$109.48 million, mainly due to reduced current lease liabilities. Year-end gearing (bank borrowings to equity) stood at 0.8%, unchanged.

Capital expenditure totalled HK$152.70 million, focused on new outlets, renovations and IT upgrades. The group operated 184 stores at fiscal year-end, comprising 156 outlets in Hong Kong and 28 in Mainland China.

The board confirmed that the financial statements were prepared on a going-concern basis, citing strong operating cash flow of HK$668.83 million and ample liquidity. Deloitte Touche Tohmatsu has agreed the figures in the preliminary announcement to the audited financial statements.