Shakey’s net profit up 26% in 1st quarter

The country’s leading pizza parlor chain operator Shakey’s Pizza Asia Ventures Inc. (SPAVI) grew its net profit in the first quarter by 26 percent year-on-year to P173 million on stronger sales and improved operating efficiency.

System-wide store sales, a combination of company-owned and franchise store sales, grew by 22 percent year-on-year to P2 billion for the first quarter, SPAVI disclosed to the Philippine Stock Exchange yesterday.

Excluding the impact of newly opened stores, same store sales grew by 11.6 percent year-on-year for the first quarter as its restaurants saw higher foot traffic and increased value of consumption among customers.

The restaurant operator was also able to improve on its profitability as margins for gross profit and earnings before interest, taxes, depreciation and amortization (Ebitda) expanded by 5.3 percentage points to 29.9 percent and 1.7 percentage points to 19.6 percent respectively.

As a result, gross profit and cash flow as measured by Ebitda grew by 52 percent and 37 percent respectively.

SPAVI, which trades on the PSE under the ticker PIZZA, attributed the growth to favorable commodity prices and purchasing synergies following its consolidation into Po family-led Century Pacific Group, which took over majority control of the business in April last year.

“We are pleased with the robust first quarter numbers, particularly the double-digit, same-store sales growth owing primarily to the success of our ‘2017 meal deal’ promotion. The first quarter is typically a lean season for our business so we are glad that the combined results of marketing programs and successful store openings have delivered the desired results,” said Vicente Gregorio, SPAVI president and chief executive officer.

For the first quarter of 2017, SPAVI added five new stores to its network, bringing total store count to 189. It targets 20 new outlets by year-end, hoping to close the year with 204 stores.

Apart from the Philippines, SPAVI also owns the perpetual rights to the Shakey’s brand for the Middle East and Asia (excluding Japan and Malaysia), China, Australia and Oceania. —DORIS DUMLAO-ABADILLA