8/9/2019 MAXS: First quarter financial results
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Max’s Group posts P140M net income for 1Q
Restaurant conglomerate cites positive turnaround for the
first three months of 2015
MANILA – The net income of Max’s Group, Inc. (MGI) rose to
P140.20 million in the first three
months of 2015, marking a 372 percent increase compared to the
same period last year.
“We are now seeing the results of our transformative efforts in
2014. As we continue to
rationalize operations across our stable of brands, we are
determined to gain more ground and
sustain this momentum moving forward,” stated Robert F. Trota,
President and CEO of MGI.
The largest operator in the chained full-service restaurant
segment disclosed its 1Q results on
Thursday, which pertains to the results of operations of the
Pancake House Group and Max’s
Entities from January to March this year.
During this period, Max’s Group consolidated revenues increased
159 percent to P2.40 billion
compared to reported figures for the same period last year. On a
pro-forma basis, topline growthcame in 6 percent higher despite
planned closure of seven outlets during the period in line with
the company’s thrust of rationalizing its store network.
Store sales, which comprised bulk of revenues, grew 6 percent to
P2.05 billion year-on-year.
Franchise income likewise went up 40 percent to P91.93 million
from P65.54 million in the same
period last year. As a result, the Company swung from a
loss of P23.80 million in the first quarter
of 2014 to a net income of P140.20 million for the first
quarter of 2015.
Aggressive expansion continues
“We remain confident in our plans to broaden our international
footprint by positioning some of
our brands as mainstream products in new markets,” Trota
remarked.
From January to April, the Company opened 10 outlets including
three overseas. The company
opened a fourth Max’s Restaurant in the Middle East located in
Al Ain, United Arab Emirates
(UAE) and another branch at Scarborough, Ontario in Canada.
Pancake House, on the other hand,
now has eight stores in Malaysia, including the addition of a
new outlet in Kuala Lumpur.
As of April, the Max’s Group has a total of 543 branches. For
2015, it plans to open 80-90 new
branches with half already primed in secured locations. It
also intends to accelerate the rollout
pace of these stores in the next quarter.
MGI to benefit from improved operational efficiency in 2015
“The company continues to evaluate underperforming stores and
streamline its base of operations
primarily in supply chain, marketing, and support
services,” cited Trota.
