Max's Group posts record profits

Max’s Group, Inc., the largest casual dining restaurant group in the Philippines, reported a 38 percent growth in organic net income to P622 million last year from the 2021 statutory net income of P451 million. In a disclosure to the Philippine Stock Exchange, the firm said the 2021 net income includes a P377 million gain from the sale of a subsidiary. In terms of organic profitability, the 2022 financial results reflect an 8x multiple versus 2021 and outperform pre-pandemic 2019 by 63 percent. The Group said its strategies developed and executed during the course of the pandemic have accelerated its profit recovery posting an all-time high organic net income for 2022 surpassing pre-pandemic levels amidst COVID lockdowns, market changes and commodities risks faced throughout the year. “Our commitment to our stakeholders is to not only recover during the pandemic but come out stronger,” said MGI Chief Executive Officer Robert F. Trota. He added that, “Despite the challenges that the organization has faced since the first lockdown in 2020, our business model has been tested and proven, with consistency of executed strategies as evidenced in our recovery.” The Group’s resurgence was strongly backed by its strong core portfolio of brands across its local and international store network. Dine-in brands Max’s Restaurant and Pancake House secured a significant boost in sales as restrictions continued to relax, while off-premise brands Yellow Cab Pizza Co. and Krispy Kreme sustained their pandemic-proofed resilience. In addition, MGI has further strengthened its manufacturing capabilities with the commissioning of its consolidated commissary, which expanded the Group’s growth potential into manufacturing and its food retail and business to business (B2B) segments as an adjacency to its core. MGI products are already present in supermarkets and convenience stores. This segment is gaining traction as MGI aims to be a leader in the growing food retail category to supplement its core restaurant and commissary businesses. MGI’s system wide sales (SWS) generated from both company-owned and franchised stores for the full year amounted to P17.60 billion, growing 41 percent from the same period last year with 2021 sales of P12.52 billion. Consolidated revenues of the Group for the year amounted to P10.98 billion, a 44 percent growth from P7.64 billion in the same period of the previous year. Local same store sales growth (SSSG) jumped 43 percent while global SSSG increased by 36 percent proving opportunities were maximized as the market continues to open, bolstered by continued relaxed restrictions and holiday demand surge in the fourth quarter. Meanwhile, the international business reported a solid 15 percent growth despite labor challenges in the North America market, with new agreements in place to further expand global reach in other markets. "Our business now stands on a stronger foundation. Our commitment to our shareholders was that we will be more than ready when the market is ready,” said MGI President Ariel P. Fermin. He noted that, “The remastered fundamentals that started in 2020, coupled with our strategic pivots, are not only seen in our financial performance but on how the Group has evolved.”