Leading local casual dining group Max’s Group Inc. (MGI) grew net profit last year by 14.8 percent to P724.23 million as robust food delivery sales complemented higher restaurant sales, commissary and franchising revenues.
For the fourth quarter alone, net profit surged by 27.1 percent year-on-year to P229.45 million on the back of revenues which grew by 6.5 percent year-on-year to P3.97 billion, MGI disclosed to the Philippine Stock Exchange on Thursday.
These results reflected new accounting standards under Philippine Financial Reporting Standards (PFRS) 16, under which a right-of-use asset is recognized and amortized over the lease term while interest expense is incurred on the lease liability.
For the full year, systemwide sales increased by 7 percent to P20.11 billion, driving a 5.3-percent improvement in revenues to P14.4 billion.
Apart from its flagship Max’s Restaurant, MGI’s family of brands include Pancake House, Yellow Cab Pizza, Krispy Kreme, Jamba Juice, Max’s Corner Bakery, Teriyaki Boy, Dencio’s, Sizzlin’ Steak, Maple, Kabisera, Le Coeur De France and Singkit.
Restaurant sales amounted to P11.79 billion, up by 4.4 percent for the year. Due to MGI’s rapidly growing franchise base, commissary sales increased by 13.6 percent to P1.78 billion. Franchising and other revenue improved by 1 percent to P828.92 million.
MGI reported a significant accelerator in its performance driven by partnerships with food aggregators. Combined with MGI’s in-house delivery operations, systemwide delivery sales grew by 20.4 percent to P1.87 billion.