The country’s leading pizza parlor chain operator Shakey’s Pizza Asia Ventures Inc. grew its net profit last year by 14 percent to P762 million on sustained increase in revenue from its expanding store network.
This performance translated to a return on equity of 21 percent for the year, Shakey’s disclosed to the Philippine Stock Exchange yesterday.
System-wide sales breached the P8-billion mark, up by 14 percent to P8.3 billion. Excluding newly opened stores to allow better year-on-year comparison, same-store sales grew by 5 percent.
Its Philippine network ended the year with 208 restaurants, of which 24 were opened during the year, higher than the target of 20.
“Our strong topline performance, underpinned by healthy same-store sales growth and record new store openings last year, demonstrates the strength of the Shakey’s brand even in a highly competitive environment,” said Vicente Gregorio, president and CEO of Shakey’s.
The company—which trades on the Philippine Stock Exchange under the ticker “PIZZA”—saw its total revenue grow by 17 percent to P7 billion for the year.
In terms of profitability, Shakey’s delivered a 12-percent growth in gross profit and 19 percent growth in cash flow as measured by earnings before interest, taxes, depreciation and amortization (Ebitda). These translated to industry-leading margins of 29 percent and 20 percent at the gross profit and Ebitda level, respectively.
“Despite higher raw material prices and the current inflationary environment, synergies realized post-acquisition of the Century Pacific Group, inventory strategies, and various operating efficiencies have supported our above average margins and allowed us to invest in capability-enhancing initiatives,” said Gregorio.
For 2018, the company plans to open 20 new stores in the Philippines.
“Aside from opening several new stores in locations outside of typical first tier cities, we are also upgrading the look and feel of existing stores to enhance our guests’ dining experience. Parallel to these activities meant to strengthen our dine-in presence, we are likewise beefing up delivery systems to support our guests’ growing need for convenience,” he said. —DORIS DUMLAO-ABADILLA