Max's Group Inc. (MGI), the Philippines’ largest casual dining restaurant group, reported a 7.3-percent decline in consolidated net income to ₱152 million in the first half of 2025 from ₱164 million in the same period last year as cost of sales rose while revenues were flat.

However, the firm disclosed to the Philippine Stock Exchange (PSE) that earnings in the second quarter improved by 7.5 percent to ₱101 million in 2025 from ₱93 million last year as a drop in expenses and finance costs offset lower revenues.

Revenues were up 0.1 percent to ₱5.86 billion in the first half of 2025 from ₱5.85 billion last year, while second-quarter revenues dipped 0.4 percent to ₱3.04 billion from ₱3.06 billion in 2024 amid a softer sales environment overall.

In the first half, MGI said revenues were supported by solid same-store-sales growth (SSSG) of 2.9 percent, a significant increase from 0.3 percent in the same period last year.

The positive SSSG performance reflects stronger sales per store, driven by enhanced customer engagement and targeted marketing efforts across the network.

In the second quarter of 2025, SSSG is at two percent compared to a 2.3-percent growth recorded in 2024. This is primarily attributed to seasonal fluctuations in consumer demand.

Despite operating a smaller store network of 591 locations compared to 635 in 2024, the group experienced an increase in systemwide sales per store, underscoring consistent sales productivity at the unit level.

Restaurant and commissary sales remained steady at ₱5.5 billion year-to-date with 3.4-percent growth in franchise and other revenues as supported by higher continuing license fees and franchise fees, offsetting softer system-wide sales.

Increase in cost of sales and services was mainly driven by higher food and beverage costs, labor costs, utilities, and repairs and maintenance.

Selling and marketing expenses decreased primarily due to targeted promotional and advertising costs.

Other income in the second quarter of 2025 increased to ₱53 million from ₱46 million in the same period last year 2024, reflecting a 14.9-percent year-over-year growth. The uplift was mainly driven by subsidies from corporate tie-ups supporting marketing and promotional efforts.

Finance costs decreased to ₱55 million in the second quarter of 2025, from ₱67 million in the same period of 2024, reflecting a 19.1-percent reduction. For the first half of 2025, finance costs totaled ₱121 million, down 11.7 percent year-over-year, reflecting lower interest expense.