Max’s hits profits so far on year of rooster
The country’s leading casual dining chain Max’s Group Inc. (MGI) grew its nine-month net profit attributable to equity holders of parent by 8.86 percent year-on-year to P419.25 million on higher restaurant sales.
Including net profit attributable to minority interest, MGI’s net profit rose by 11 percent year-on-year to P421.73 million.
System-wide sales increased by 14 percent to P12.6 billion for the period in review, thus supporting a 12-percent expansion in revenues to P9.04 billion.
Same-store sales growth was at 5 percent for the covered period.
Commissary sales went up by 5 percent year-on-year to P1.02 billion, which MGI said was indicative of the stable performance of its franchising business. Revenues from new franchises, royalty and continuing license fees gained by 8 percent to P432.72 million due to higher recurring income and new contracts.
Cash flow as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) stood at P970.80 million.
“The results underscore our steady growth state notwithstanding the effects of cyclicality, rising input costs and heightened competition. As we channel this momentum into the Christmas season, we are primed for another strong finish to cap off the year,” MGI president Robert Trota said.
For the third quarter alone, attributable net profit was flat at P90.21 versus P91.6 million in the same period last year as MGI grappled with commodity price escalations, increased competition and wet climate.
“While we expect to close 2017 on a high note, we remain confident of our growth prospects heading into next year. We plan to roll out around 80 to 90 stores including 25 to 30 offshore for 2018,” said Trota.
As of the third quarter, MGI opened 58 new stores, both domestically and abroad, bringing its overall network to 660 branches. The company plans to establish 10 to 15 additional outlets for the remainder of the year.
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