Max’s profit slightly up in 2018

Leading local casual dining chain Max’s Group Inc. (MGI) posted P631 million in net profit last year, up by 0.8 percent from year-ago level as systemwide sales grew despite the high-inflation environment.

Net profit slightly rose from P626 million in 2017, which included P146 million in deferred tax benefit recognized on net loss carryovers of some entities.

Systemwide sales were up by 8 percent to P18.8 billion as MGI expanded its network.  Excluding new stores, same-store sales grew by 4 percent.

In 2018, it rolled out 66 new stores, including 11 international branches, bringing to 705 its total outlets.

MGI’s revenue last year was up by 8 percent to P13.68 billion. Restaurant sales rose 8 percent to P11.3 billion, driven by the opening of 24 branches.

Commissary sales went up by 10 percent to P1.57 billion due to growing franchising base. Franchising income was up 6 percent to P820.4 million last year.

MGI previously announced its strategic pivot to a franchising-led approach to spearhead expansion in the long term.

Cash from operations surged by 68 percent to P1.2 billion. Earnings before interest taxes, depreciation and amortization rose 28 percent to P1.58 billion. —DORIS DUMLAO-ABADILLA