Max’s Group’s income growth slows down due to bad weather

MANILA, Philippines – Restaurant chain operator Max’s Group Incorporated saw its net income grow only by 3% to P380 million in the first 9 months of the year, mainly because of the slowdown it experienced last quarter after a lean supply season.

Max’s Group told the Philippine Stock Exchange (PSE) on Friday, November 4 that its 9-month net income only inched up to P380 million, from P368 million in the same period in 2015.

“The third quarter is normally our lean period owing to the wet climate and other cyclical factors. Nonetheless, the historical slowdown should reverse ushering into the Christmas season,” Robert Trota, president and chief executive Max’s Group, said.

The restaurant chain’s system-wide sales increased by 12% to P11.09 billion in the first 9 months of the year, from P9.87 billion in the same period last year.

Max’s Group said in the disclosure that its revenues also went up by 11% to P8.09 billion in the January-September period, from P7.30 billion. 

Commissary sales rose 19% to P971.03 million during the 9-month period this year, from P813.59 million a year ago. Meanwhile, revenues from franchise, royalty, and continuing license fees increased 39% to P399.87 million.

Open more stores

“For the remaining months of 2016, we expect the prevailing economic environment to sustain its positive trend. We will open another 20-30 stores to close the year, putting ourselves in a strong position to meet Yuletide demand,“ Trota said.

Max’s Group told the local bourse that it has rolled out 55 new stores, including 11 international branches, bringing its overall count to 611 stores with 44 located abroad.

Overseas, Max’s Group said it continues to convert its existing development pipeline of 91 outlets into physical stores. (READ: Max’s Group on Europe expansion: Not for now)

During last quarter, Max’s Group had opened flagship stores for Yellow Cab Pizza in Beijing and Changsha Province in China as well as Sizzlin’ Steak in Vietnam.

“From securing territories, focus is now centered on store building activities to boost our recurring income base. In the same way, we remain in pursuit of leads into other markets,” Peter King, chief executive officer of Max’s Group International, said in the disclosure.

The restaurant chain operator said it will further reinforce its support infrastructure anchored on a shared services model.

Max’s Group recently invested in a modern human resources information system designed to electronically consolidate people-related requirements.

Max’s Group is the largest operator in the Philippine casual dining segment. Its family of brands include Max’s Restaurant, Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Meranti, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France and Singkit. – Rappler.com