LH Group Limited Issues Profit Warning Amid Revenue Decline

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LH Group Limited Issues Profit Warning Amid Revenue Decline

The latest announcement is out from LH Group Limited ( (HK:1978) ).

LH Group Limited has issued a profit warning, indicating an expected loss of up to HK$36.0 million for the year ended December 31, 2024, compared to a profit of approximately HK$88.1 million in 2023. The downturn is attributed to decreased revenue due to weak local spending on catering and impairment provisions for underperforming stores. Despite these challenges, the company has taken proactive steps to mitigate the impact, including negotiating rental reductions, optimizing supplier terms, and launching promotional campaigns to maintain a healthy cash flow.

More about LH Group Limited

LH Group Limited operates in the catering industry, focusing on providing diverse dining experiences through various brands. The company is committed to enhancing brand diversity and maintaining business stability by implementing strategic measures such as developing new brands and optimizing operational costs.

YTD Price Performance: -6.00%

Average Trading Volume: 201,758

Technical Sentiment Consensus Rating: Buy

Current Market Cap: HK$380M

Learn more about 1978 stock on TipRanks’ Stock Analysis page.

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