Shakey’s nets P386M
The country’s leading pizza chain Shakey’s Pizza Asia Ventures Inc. chalked up a recurring net profit of P386 million in the first semester, rising by 10 percent year-on-year on higher revenues from its expanding store network.
System-wide sales rose by 18 percent year-on-year to P4.1 billion in the first semester, driven by same-store sales growth of 8 percent and additional revenues from the opening of new stores.
Since the start of the year, Shakey’s added 11 new outlets, ending the first half with 195 stores in its Philippine network.
Net revenues grew by 20 percent year-on-year to P3.4 billion even as margins saw a decline of 100 basis points (bps) to 11.4 percent due primarily to interest expense incurred by the company beginning middle of 2016.
Taking out the impact of non-operating costs, Shakey’s was able to improve profitability with gross profit and operating margins expanding by 120 bps and 180 bps, respectively, versus the same period last year. These were attributed to synergies implemented in the aftermath of Century Pacific Group’s takeover alongside various price increases in anticipation of higher input costs.
As a result, gross profit and operating income grew by 26 percent and 34 percent, respectively, with their corresponding margins at 30.1 percent and 17.6 percent during the first half.
Shakey’s maintained a return on equity of 20 percent as of June.
“On a year-on-year basis, our second quarter was slower than the first as we faced an extraordinarily high base last year. In addition, we had just ended the first quarter’s successful ‘2017 meal deal’ promotion which boosted sales for what is a typically lean period for us. However, we are pleased to see that on a sequential basis, we continue to post revenue growth and profitability improvements,” said Vicente Gregorio, Shakey’s president and chief executive officer.