Restaurant and food service group Shakey’s Pizza Asia Ventures, Inc. (SPAVI) reported a decline in net income to P250 million in the third quarter of 2024, from P256.8 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, the company stated that this decrease was expected due to ongoing investments in expansion and sales-building activities.
SPAVI said that with easing input costs and the expected seasonal increase in the fourth quarter, the group anticipates achieving double-digit net income growth for the full year.
Systemwide sales for the three-month period reached P5.4 billion, a 16 percent increase compared to the same period last year. Despite a challenging consumer environment, the group reported healthy sales performance driven by improving same-store sales growth (SSSG) and the opening of new locations during the period.
The Group’s SSSG stood at four percent in the third quarter, an improvement from the three percent recorded in the second quarter of 2024.
As a result, year-to-date sales as of September rose by 15 percent year-on-year to P15.5 billion. SPAVI added 342 net new outlets in the first nine months, bringing the total to 2,483 stores. Approximately 15 percent of the company’s expanding international network is now located outside the Philippines.
In terms of profitability, gross profits rose by nine percent to P853 million in the third quarter of 2024. However, due to its investments in growth, operating expenses (OPEX) increased by 20 percent.
SPAVI President and CEO Vicente Gregorio stated, “As we strive to grow our portfolio of brands globally, we are guided by SPAVI’s guest-centric ethos. During these times, consumers feel that they are paying more but getting less.” He emphasized the company's commitment to investing in its brands, stores, and staff to enhance value and improve customer experiences.
Gregorio noted that with a better outlook on commodity prices, the group reinvested in brand-building innovations and value-for-money offerings. In terms of store network investments, Potato Corner (PC) is making significant strides in expanding its international presence, having opened approximately 90 units in the first nine months of the year. PC now operates in key markets, including Thailand, Singapore, Malaysia, Canada, and China.
Furthermore, SPAVI has initiated a store refresh program, modernizing its outlets to improve guest experiences across its brands: Shakey’s, Peri-Peri Charcoal Chicken and Sauce Bar, and Potato Corner. Year-to-date capital expenditures, driven by investments in renovations and new stores, have risen to nearly P900 million, more than tripling from the same period last year.
“Due to these investments, we expect our bottom line to improve in the fourth quarter as the base normalizes,” Gregorio stated. “As the holiday season approaches, we are optimistic. With inflationary pressures subsiding and an improving consumer landscape, barring any major negative externalities, we look forward to a festive season this year. We are on track to open more than 450 new stores and outlets this year, which is crucial for sustaining our double-digit sales and profit growth trajectory in 2024 and beyond.”