By James A. Loyola
Max’s Group, Inc., the country’s largest full-service casual dining chain, reported a slight growth in net income to P631 million last year from P626 million in 2017 due to higher sales.
In a disclosure to the Philippine Stock Exchange, the firm said its earnings in 2017 included P146 million in deferred tax benefit recognized on net loss carryovers of some entities.
Income before income tax actually rose 28 percent to P916 million from P713 million a year ago.
For 2018, MGI rolled out 66 new stores including 11 international branches to bring its total network count to 705 outlets by year-end.
Systemwide sales rose 8 percent to P18.80 billion from P17.34 billion with a steady same-store sales showing of 4 percent. Topline growth was also at 8 percent to P13.68 billion from P12.66 billion.
Restaurant sales increased 8 percent to P11.30 billion from P10.46 billion primarily driven by the opening of 24 new company-owned branches.
Commissary sales went up 10 percent to P1.57 billion from P1.42 billion with a rapidly growing franchising base. Franchising income grew 6 percent to P820.4 million for 2018 from 776.2 million in 2017.
“Our results continue to show progress as we focus on our consumers and operate in the most cost-efficient way. Despite a rising inflationary environment, we managed to improve our profitability level,” said MGI Chief Operating Officer Ariel P. Fermin.
MGI had made a strategic pivot to a franchising-led approach to spearhead expansion in the long-term. This move intends to capitalize on a higher recurring income stream and lighter asset deployment.
For 2019, MGI is confident that the prevailing macroeconomic backdrop will remain supportive of its business.
“We are entering 2019 with guarded optimism with inflation starting to ease and election-related spending coming into play. Coupled with our business building programs, we hope this positive momentum will continue throughout the year,“ said MGO President and Chief Executive Officer Robert Trota.