By James A. Loyola
Max’s Group Inc. (MGI), the country’s largest casual dining restaurant group, reported a 9.8 percent growth in net income to P494.77 million in the first nine months of 2019 from P450.56 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, MGI said earnings would have grown 13.2 percent to P510.14 million without the effects of Philippine Financial Reporting Standards which became effective this year.
“Our positive results are attributed to the success of our current company-wide strategies, namely: growing our franchise business, investing in supply chain modernization, and strengthening brand relevance,” said MGI President and CEO Robert F. Trota.
He noted that, “as industry conditions improve, we are resolute in our commitment to maintain market leadership and increase shareholder value.”
For the first nine months of the year, systemwide sales increased by 5.7 percent to P14.55 billion from P13.76 billion in the comparable period in 2018.
Revenue gained by 4.8 percent year-on-year to P10.43 billion from P9.95 billion as restaurant sales amounted to P8.53 billion, a 3.0 percent improvement from the P8.28 billion reported in the same period last year.
Driven by an ongoing pivot to franchising operations, commissary sales rose by 13.5 percent to P1.29 billion from P1.13 billion, while franchising income climbed 13.6 percent to P608.23 million from P535.23 million.
MGI continues to partner with food aggregators to supplement its in-house delivery operations and this has allowed it brands to expand its reach to new consumers.
For the first nine months of 2019, delivery sales grew by 15.8 percent from the same period last year to P1.32 billion from P1.14 billion.
“We hope to advance our overall performance during the holiday season and to end the year strongly. We have augmented the capacity of our commissary operations and continue to future-proof our business for sustained efficiency and long-term profitability,” said MGI Chief Operating Officer Ariel P. Fermin.
From January to September 2019, MGI opened a total of 50 new stores including 16 overseas. This brings the Company’s total store network to 730 branches, with 64 situated across various locations in North America, the Middle East, and Asia.