The country’s leading casual restaurant dining Max’s Group Inc. (MGI) grew its first semester net profit by 12 percent year-on-year to P331.72 million on higher earnings from its expanding restaurant chain.
MGI’s systemwide sales increased by 12 percent year-on-year to P8.29 billion for first half, supporting an 11-percent year-on-year rise in revenues to P6.05 billion.
Six-month restaurant sales expanded by 11 percent year-on-year to P5.04 billion, attributed to new store openings and steady same-store sales performance.
Commissary sales for the period also went up by 7 percent year-on-year to P674.04 million, driven by a growing number of franchised outlets.
Revenues from new franchises, royalty and continuing license fees went up by 23 percent year-on-year to P333.65 million in the first half, to additional franchising deals and a larger recurring income stream.
“We are happy with the results despite an increasingly challenging environment. Moving into the next quarter, we have lined up exciting product initiatives to cushion cyclicality effects during wet season,” MGI president and chief executive officer Robert Trota said in a press statement on Tuesday.
For the period, MGI reported headwinds amidst escalating prices of input components and stiffer industry competition. Nonetheless, MGI reported warm customer reception to the launch of promotional campaigns such as Chicken All-You-Can for Max’s Restaurant and World Pizza Day for Yellow Cab.
“We expect prevailing economic conditions will remain supportive of our business,“ Trota said.
For the semester, MGI opened 41 new stores, including six outlets overseas. Total store network ended the semester at 650 branches, of which 53 are overseas.
MGI to build 25 to 30 more stores for the balance of the year.
Overseas, MGI is focused on executing its current pipeline of around 140 stores across various locations in North America, Middle East and Asia.
For 2017, MGI has signed two development contracts to establish at least 22 Yellow Cab outlets in Vietnam, Brunei and East Malaysia within five years.
“While efforts are centered on expanding physical presence, we are constantly on the lookout for opportunities to penetrate new geographies,” said Peter King, chief executive officer of Max’s Group International.