MANILA, Philippines – In a year it became a publicly-traded company, pizza chain Shakey’s Pizza Asia Ventures Incorporated (PSE: PIZZA) saw its net income jump 40% on store expansion and corporate restructuring.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, March 27, PIZZA reported a full year 2016 net income of P760 million, driven by stronger sales and expanded store network.
The reported income however includes a one-time boost of P90.3 million, due to a change in ownership earlier in 2016, subsequent restructuring and its initial public offering at the end of the year. (READ: Shakey’s sizzles in PSE debut amid volatility)
Excluding the one-off boost, PIZZA’s recurring net income after taxes increased by 40% year-on-year to P670 million.
The chain’s sales rose by 14.3% to P7.34 billion, driven by same store sales growth of 3.9% and new stores.
PIZZA opened 17 new outlets this year, 3 more than the 14 opened the year before. It ended 2016 with a total of 184 stores nationwide.
For 2017, it is looking at opening 20 new stores including its first overseas branch in Kuwait in the 3rd quarter of the year, having recently signed an agreement with a franchisee to build at least 10 stores there.
PIZZA’s new majority owners, the Po-family led Century Pacific Group (CPG), also restructured the firm last year, acquiring the commissary which supplies bakery products to Shakey’s as well as other food service customers.
The firm reported that recurring revenues, including those from an in-house commissary, grew by 14.7% to P6.01 billion.
CPG, parent firm of the Philippine-listed Century Pacific Foods, also owns the rights to the Shakey’s brand in the Middle East, Asia (excluding Japan and Malaysia), China, Australia, and Oceania. – Rappler.com
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