Max’s Group, Inc., the Philippines’ largest casual dining restaurant group, reported a net income of P235 million in the first nine months of 2021, a strong reversal from the net loss of P982 million in the sam period last year.
In a disclosure to the Philippine Stock Exchange, the firm said it registered a 10 percent growth in system-wide sales to P8.62 billion in the first nine months of 2021 from the P7.83 billion performance of the same period in 2020.
MGAI said local growth complemented healthy contribution from its international business.
Revenue likewise performed at positive—though more muted—growth at 3 percent, despite tighter lockdowns experienced during the year as compared to 2020 which enjoyed almost three months of full business operations prior to the start of the pandemic.
“We committed to our stakeholders that Max’s Group would embrace transformation for the ‘next normal,’” said freshly-minted MGI President Ariel P. Fermin.
He added that, “We made strategic shifts to evolve the depth of our business through demand generation for our ‘core of core’ brands of Max’s Restaurant, Pancake House, Yellow Cab Pizza Co., and Krispy Kreme.”
“We have unleashed the force of Dencio’s, Sizzlin’ Steak, Teriyaki Boy, and Jamba Juice as re-imagined cloud brands, effectively multiplying their reach beyond their existing brick-and-mortar networks, and liberated from major CAPEX requirements,” Fermin said.
He noted that, “Even more excitingly, we likewise increased our breadth by re-envisioning ourselves from pure ‘restaurant operators’ into manufacturers, merchants, and distributors.”
Fermin said “The new revenue adjacencies we identified early on are now coming to full fruition. Our new Carmona commissary allows Ready-to-Cook items from our beloved brands to be present in major supermarkets and convenience stores nationwide, while our fleet of direct-to-community distributors gives us intimate presence close to home for our fans.”
“MGI’s third quarter market performance is testament to our vision, and proves we are just as revolutionary as we are resilient,” Fermin attested.
He also pointed out that, “Even with revenues performing at high double-digit growth in the third quarter, our cost of sales and services contracted by 12 percent. This affirms the acumen and rigor that locked in a model even more agile than who we were pre-pandemic, end-to-end from our supply chain to our stores to our head office.”
MGI Chief Executive Officer Robert F. Trota said that, “Through the global network of stores we have built in other geographies through strong franchise alliances, we have successfully tempered challenges faced in our local market.”
He added that, “We remain fully optimistic in the ongoing renewal of Max’s Group, and believe we have a model in place to catapult us forward in the years to come.”