Shakey’s profit rises 15% to P519M

The country’s leading pizza parlor chain operator Shakey’s Pizza Asia Ventures Inc. (SPAVI) grew its recurring net profit by 15 percent year-on-year to P519 million in the first nine months on higher sales from its expanding network of restaurants.

System-wide sales rose by 15 percent to P6 billion, driven by same-store sales growth of 6 percent and an expanding local store network.

Since the start of the year, SPAVI has added 16 new outlets, ending September with a Philippine store network of 200. It expects to end the year with 207 stores in the Philippines, ahead of its earlier target of 204.

Net revenues for the nine-month period grew by 18 percent year-on-year to P5 billion.

For the third quarter alone, SPAVI’s revenues grew by 11 percent to P1.6 billion.

“We encountered a more competitive environment in the third quarter, which is also typically the second half’s leaner period. We are confident, however, that with the various product and marketing initiatives implemented, we will see another round of good sales growth as we enter the Christmas season—historically the strongest part of the year,” said Vicente Gregorio, SPAVI president and chief executive officer.

Operating profit and cash flow margins expanded by 210 basis points and 120 bps, respectively, versus the same period last year. These were attributed to synergies implemented after the entry of the Century Pacific Group as the new controlling shareholder, alongside price increases and cost-efficiency measures executed in anticipation of higher input costs. —DORIS DUMLAO-ABADILLA