Shakey’s Pizza Asia Ventures Inc. reported a P247 million net loss for 2020 a 129 percent drop and reversal from profits of P865 million earned in 2019.
In a disclosure to the Philippine Stock Exchange, Shakey’s President Vicente Gregorio said “2020 was obviously a one-of-a kind year amidst the COVID-19 pandemic and the restaurant industry was one of the hardest hit.”
He added that, “Nonetheless, despite our net loss for the year, we’ve managed to pull through with positive cash flows, improved cost structures, and greater ability to address off-premise demand thanks to the gallant efforts of our team and the numerous business innovations we’ve been put into place.”
For most of last year, the Philippines was under different phases of lockdowns which, at its peak, forced the temporary closure of 91 percent of the Company’s store network at the end of March.
The firm said the loss was incurred despite a recovery in the fourth quarter of 2020 which registered a net income of P215 million following the losses posted for most of 2020.
Earnings before interest, tax, depreciation, and amortization, or EBITDA, also saw sequential improvement, hitting P400 million in the fourth quarter - up significantly from Php6 million the quarter before. This also managed to stay positive for the full year, hitting P635 million in 2020.
The improvement in both profit and cash flow during the last three months was brought about by a marked increase in systemwide sales.
The Company’s fourth quarter net income was also boosted by tax benefits as a result of its negative full year profitability.
Quarantine measures have eased with store traffic inching up slowly during the second half of 2020. For the fourth quarter alone, PIZZA’s systemwide sales stood at P1.8 billion, a growth of 33 percent versus the previous quarter due to the seasonal holiday pick-up, increased dine-in sales, as well as a resilient delivery and carry-out business.
For full year 2020, the Company ended with total sales of P6.6 billion – equivalent to 64 percent of 2019 sales. On a same-store sales basis, excluding the impact of closed stores, sales were down 30 percent year-on-year.
“We are pleased by the improvements we saw towards year-end which gave us the confidence to further invest in future growth, readying ourselves to better compete in the ‘new normal’ whilst creating jobs amidst the Philippines’ tough economic environment,” said Gregorio.
He added that, “Moving into 2021, the ability to stay nimble and adapt to the ever-changing environment will be of utmost importance. We are hopeful that dine-in continues to recover this year, but are nonetheless managing the fact that guests will likely continue to need convenient and flexible out-of-store options.”