Max’s Group, Inc., the country’s largest casual dining restaurant group suffered a net loss of P1.68 billion last year from a net income of P724.23 million in 2019 due to the pandemic and a one time loss.
In a disclosure to the Philippine Stock Exchange, the firm said the 2020 loss includes aggregate one-off costs after tax of P727 million associated with business reorganization.
The Company reported systemwide sales (SWS)—comprised of sales generated by both company- owned and franchised stores—of P10.85 billion in 2020, a 46 percent drop from the P20.11 billion generated in 2019.
Revenues fell by 50 percent to P7.14 billion, as compared to the P14.40 billion reported for the entire 2019.
“This extraordinary year was a reflection of the global restaurant industry performance amidst the COVID- 19 pandemic. The continued shift in pandemic restrictions drove the volatility of local performance,” said MGI President and CEO Robert Ramon F. Trota.
He added that, “Nevertheless, we have taken this opportunity to overhaul our operating structure for a nimbler future.”
Trota said “We have chosen to focus on our core brands of Max’s Restaurant, Yellow Cab Pizza Co., Krispy Kreme, and Pancake House to maintain market relevance through channel and menu innovation, while likewise optimizing our store network and overall cost structure.”
He said they also continued to strategically invest in opening stores throughout the pandemic with their partners both locally and abroad.
“Our international markets have demonstrated remarkable resilience to partially offset the challenges in the local environment. Such brands as Yellow Cab and Krispy Kreme in particular have continued to thrive in the market, with recovery outpacing the rest of our portfolio,” said Trota.
He reported that, locally, “Core off-premise channels such as Delivery and Take-Out performed at indices exceeding even pre-pandemic levels, proving that consumer demand for our portfolio of most-loved brands remains more vibrant than ever.”
MGI Group Chief Operating Officer Ariel P. Fermin said “We are determined to come roaring out of this temporary downturn of 2020, having accelerated three years of strategy into three quarters of execution. Our off-premise business across all core brands is more robust than ever.”
He added that, “We believe we were quick to spot green shoots with reliable returns. We have made significant in-roads in accelerating our B2B stream through new consumption formats like Ready-to-Cook and Ready-to-Heat. Our brands are now being found in such respected retailers as SM Markets, FamilyMart, Lazada, and Shell Select.”