Hong Kong-based restaurant company Fulum Group Holdings (Fulum) has announced that it expects to report positive profits for the fiscal year (FY) ended 31 March 2023.

The company is anticipating net profits ranging from HK$19m ($2.4m) to HK$22m ($2.8m).

This will mark a turnaround for the group, which posted a net loss of approximately HK$49m ($6.2m) for FY22.

The company attributed the loss to the fifth outbreak of the Covid-19 pandemic in Hong Kong.

Fulum said that in FY23, it has seen an improvement in its results due to the government’s subsidies granted through the ‘2022 Employment Support Scheme’, as well as the gradual recovery of economic activities.

In a statement, the company said: “Further into the second half of FY23, the full border reopening between Hong Kong and mainland China in February 2023, as well as the lifting of Hong Kong’s mask mandate in March 2023 have also brought about a positive effect to the Group’s business conditions.”

According to a report in the South China Morning Post, the Fulum Group shut down 20 restaurants in February 2020 after an employee working at Sportful Garden Restaurant in the Wan Chai district contracted Covid-19.

The company said that the decision to close restaurants was taken to ensure the safety of its other workers and consumers.