Shakeys posts P762M recurring income

Published April 10, 2018, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Shakey’s Pizza Asia Ventures Inc., the country’s leading chained full-service restaurant, reported a 14 percent improvement in recurring net income to P762 million last year from recurring profits of P669 million in 2016.

In a disclosure to the Philippine Stock Exchange, the firm said net income growth was primarily driven by the sustained increase in revenues, successful store network expansion, and maintained profitability despite higher input costs.

Systemwide sales breached the P8 billion mark, surging 14 percent year-on-year to P8.3 billion, on the back of same-store sales growth of 5 percent.

Shakey’s likewise ended the year with 24 new stores opened, ahead of its earlier target of 20. This brought total Philippine store network to 208 as of end 2017.

“Our strong topline performance, underpinned by healthy same-store sales growth and record new store openings last year, demonstrates the strength of the Shakey’s brand even in a highly competitive environment,” said Shakey’s President Vicente Gregorio.

All in all, the Company saw its total revenues grow 17 percent to P7.0 billion in 2017.

“Despite higher raw material prices and the current inflationary environment, synergies realized post-acquisition of the Century Pacific Group, inventory strategies, and various operating efficiencies have supported our above average margins and allowed us to invest in capability-enhancing initiatives,” said Gregorio.

For 2018, the Company earlier announced plans to open another 20 net new stores in the Philippines which will bring its nationwide store count to 228 at the end of this year.