SUMMARY
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MANILA, Philippines – Max’s Group Incorporated swung back to profitability as it registered a P140.2 million ($3.14 million) net income for the first 3 months of 2015.
Max’s Group’s first quarter involves the financial results of operations of the Pancake House Group and Max’s Group restaurant brands.
The restaurant chain operator recovered from the P23.8 million ($533,138.34) net loss recorded in the first quarter of 2014, as the company starts to reap the benefits of its recent acquisition of Pancake House Incorporated.
In a disclosure to the stock exchange, Max’s Group said consolidated revenues increased 159% to P2.4 billion ($53.76 million) compared to reported figures for the same period in 2014.
“We’re now seeing the results of our transformative efforts in 2014. As we continue to rationalize operations across our stable of brands, we’re determined to gain more ground and sustain this momentum moving forward,” Max’s Group President and Chief Executive Officer Robert F. Trota said.
Store sales, which comprised bulk of revenues, grew 6% to P2.05 billion ($45.92 million) year-on-year.
Franchise income also went up 40% to P91.93 million ($2.06 million) from P65.54 million ($1.47 million) in the same period last year.
Overseas outlets
The Max’s Group opened 10 outlets including 3 overseas from January to April.
The company opened a fourth Max’s restaurant in Al Ain, United Arab Emirates (UAE), and another branch in Scarborough, Ontario in Canada.
Pancake House now has 8 stores in Malaysia, including a new outlet in Kuala Lumpur.
As of April, the Max’s Group has a total of 543 branches.
For 2015, it plans to open 80 to 90 new branches. It also intends to accelerate the rollout pace of these stores in the next quarter.
“We remain confident in our plans to broaden our international footprint by positioning some of our brands as mainstream products in new markets,” Trota said.
Trota added the company will continue to evaluate underperforming stores and streamline its base of operations primarily in supply chain, marketing, and support services.
“While first quarter results reflect that we are already benefiting from these activities, we’re still expecting to realize a sizable portion of cost savings derived from operational efficiencies and synergies within this year,” Trota said. – Rappler.com
US$1 = P44.5
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