Max’s Group H1 net income surges by 561%

MANILA, Philippines – Restaurant chain Max’s Group Incorporated reported Friday, August 7, that its first half net income surged to P247.7 million ($5.41 million).

This represents a 561% increase from the P37 million ($809,008.41) recorded in the same period a year ago on positive contribution from consolidation and continued growth expansion.

First half revenues also grew 166% to P4.88 billion ($106.69 million), with store sales growing by 5% to P4.13 billion ($90.29 million).

Franchise income jumped 47% to P190.1 million ($4.16 million), while commissary sales were flat at P559 million ($12.22 million).

The company’s first half financial results cover the operations of Max’s Group entities and Pancake House, Incorporated, which the former acquired last year.

“We continue to build on the momentum gained in the first quarter and expect to sustain this growth trajectory on the back of well structured operations,” Max President and CEO Robert Trota said.

More stores

As of end-July, Max’s Group had 535 stores after opening 18 stores in the first half of 2015.

Max’s Group currently operates several brands including Max’s Restaurant, Max’s Corner Bakery, Pancake House, Yellow Cab, Teriyaki Boy, Dencio’s Kabisera, Sizzlin’ Steak, Le Coeur de France, and Maple. It also operates international foods brands Krispy Kreme and Jamba Juice.

Max’s Group Chief Finance Officer Dave Fuentabella said at least 69 more stores will be opened in the second half of the year.

“Most of our new store rollouts traditionally occur in the latter part of the year in time for the scheduled mall openings, election-related activities, and Christmas season, all of which are seen to significantly boost revenues,” Fuentabella said.

In line with the company’s rebranding campaign, the group closed down 10 Le Coeur de France stores to rationalze its branch network and to maximize resources and improve profitability.

“The company continuous to rationalize its store network and streamline back-end operations to leverage on synergies and efficiencies,” Trota said.

He added that while these initiatives are already reflective in the group’s results, it has yet to fully realize a considerable amount of cost to be derived from operational improvements this year.

The group’s overseas expansion remains on track and expects to finalize development agreements for its brands in new territories, particularly in Vietnam and other Gulf nations.

The company recently opened a Max’s Restaurant in Daly City, California, and a new Pancake House branch in Kuala Lumpur, Malaysia. – Rappler.com

$1 = P45.74