Max’s Group Inc., the country’s largest casual dining restaurant group, reported an 82 percent improvement in net income to P427 million in the first nine months of 2022 from P234 million in the same period last year.

In a disclosure to the Philippine Stock Exchange, the firm noted that last year’s earnings include a one-off gain from the sale of a real estate holding subsidiary.

Excluding this one-time gain, earnings would have been a 399 percent turnaround from the net loss of P143 million in the same period last year.

“MGI successfully navigated through the pandemic with its strategic pivots as evidenced by financial metrics despite various lockdowns and commodity headwinds and supply chain challenges since 2020,” said MGI President Ariel P. Fermin.

He noted that, “The new business model has enabled MGI to be ready as the market opened up in 2022 and as sales continuously recovers as compared from 2020 and 2021 and as dine-in restrictions continue to be relaxed.”

“The more efficient economic model of the Group designed to accelerate profit recovery despite market constraints has proved its viability and sustainability as seen in higher margins compared to pre-Covid despite soft topline,” Fermin added.

Systemwide sales (SWS) comprising sales generated by both company-owned and franchised stores amounted to P12.56 billion in the first three quarters of 2022, a 46 percent growth from the same period last year despite strict lockdown measures in January due to the Omicron surge.

Relaxation of dine-in restrictions starting February caused a significant boost in sales of dine-in brands Max’s and Pancake House which saw their dine-in share grow month-on-month.

Off premise brands Krispy Kreme and Yellow Cab also continued their resilience and proved their pandemic proof performance.

Sales and revenues are recovering which are at 86 percent and 75 percent versus 2019, respectively, despite having lesser stores and strict lockdown measures in January.

Sales from the local market jumped 54 percent in the first nine months of 2022 versus the same period last year due to the faster vaccination rollout causing less stringent lockdown measures.

Meanwhile, the international business reported a solid 22 percent growth. MGI said future network expansion plans for the international market have been identified.

Consolidated revenues of the Group amounted to P7.77 billion in the first nine months of 2022, a 46 percent growth from P5.32 billion the same period last year driven by rapid recovery of dine-in brands with the introduction of Alert Level 1 translating to dine-in upsides, and steady contribution of traditionally off-premise driven brands.

Shifts in channel segments were seen at the start of the year as the consumer adjusted to government-mandated protocols such as limited dine-in due to health and safety precautions.

As dine-in restrictions were removed in March, dine-in increase was rapid while other channels remained strong. On a go forward basis, upsides are seen for dine-in segment as it continues to recover to pre-covid levels while other off-premise channels remain at the same level.

Core brands continue to drive the demand and increase in SWS which strengthens MGI’s business model. With each brand having its unique profile, the Group is in a good position to have a better reach across market segments.