Max’s Group, Inc., the Philippines’ largest casual dining restaurant group, bounced back to profitability in the first quarter of 2021 with an attributable net income of P335.98 million from the net loss of P168.5 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said profits were also much better than the P700 million net loss incurred in the fourth quarter of 2020.
MGI posted a 71 percent jump in first quarter systemwide sales (SWS)—comprised of sales generated by both company- owned and franchised stores—to P2.84 billion from the first quarter of 2020. For the entire 2020, SWS slid 54 percent.
Revenues rose 68 percent P1.83 billion in the first quarter of 2021 while it dropped 49 percent last year compared to 2019.
MGI said this positive turn-out in financials was augmented via asset rationalization strategies, including the collection and conversion of receivables and other fixed assets.
“We are gratified that our strategic shifts to focus on our core portfolio of iconic brands, rapidly pivot towards a diversified go-to-market strategy, optimize both our store network and head office structure, transform our total cost model, enhance our product margins, and embrace new sources of wealth via B2B and channel innovations, have paid off in our commercial results,” said MGI President Robert Ramon F. Trota.
He added that, “Our powerhouse brands… have successfully protected market demand through mindful innovation, menu management, strategic promotions, and channel development, thereby keeping us relevant, vibrant, and alive in today’s challenged consumer environment.”
“Thus, we remain confident in our ability to provide sustained value for our stakeholders, partners, and fans, even amidst these extraordinary times,” Trota noted.
He said key to this resurgence in profitability for the Group were continued efficiencies in total cost controls, with reduction indices outpacing muted market conditions.
“Our approach towards navigating the ongoing pandemic has reflected in how we re-skin our business for the new normal. A large segment of our store network has made the shift into safer al fresco dining,” said MGI Group Chief Operating Officer Ariel P. Fermin.
He added that, “We ramped up our technology investments to fully consolidate our delivery call center and dedicated motorcycle fleet across brands for productivity and capacity, complementing our thriving partnerships with major food aggregator platforms.”
Meanwhile, Fermin said “Our growing network of cloud kitchens allows us to extend geographic presence of our brands, free of major capital expenditures. Meanwhile, we continue to nurture the nationwide presence of such alternative channels as CurbsideTM Pick-Up, Park n’ Dine®, and drive-through.”
“The expansion of our footprint into the B2B space likewise continues to gather steam. Apart from our expanding RTC distribution… we have successfully assembled a network of independent community resellers to generate granular reach close to consumers’ homes,” he noted.
Thus, Fermin said that, “from being an organization driven mainly by dine-in consumption pre-pandemic, we now enjoy the most balanced mix in our history across multiple channels, multiple revenue streams. We believe in how we have transformed, and we believe in how we are built to perform.”