Max’s Group books P366.4-M net income in first half
Max’s Group, Inc. (MGI), the country’s largest casual dining restaurant group, said it has sustained a double-digit net income growth during the first half of the year, earning as much as P366.4 million in the last six months.
A disclosure to the Philippine Stock Exchange (PSE) showed that for the first half of 2019, MGI’s net income rose by 13.7 percent to P377.3 million, but taking into account the the newly adopted Philippine Financial Reporting Standards (PFRS) 16 — which provides guidelines for accounting on leases — this translates to a lower net income of P366.4 million. Still, a double-digit improvement of 10.4 percent.
During this period, the firm’s system-wide sales, a measure of all sales to consumers, increased by 4.7 percent to P9.7 billion from P9.3 billion in 2018.
Its top line growth also totaled P7.0 billion, up 4.5 percent from the P6.7 billion reported in the same period last year, while restaurant sales also improved by 2.1 percent to P5.7 billion from P5.6 billion.
“Our first half success is attributable to heightened brand relevance, improving market conditions, and the effectiveness of our enterprise-wide productivity measures. Similar to previous quarters, we have consistently delivered profitable growth. We aim to continue expanding our margins through more profitable bundles, commissary modernization, and supply-chain integration,” MGI Group Chief Operating Officer Ariel Fermin said.
For the second quarter alone, the company’s system-wide sales grew by 5.9 percent to P5.1 billion from P4.9 billion. Total revenues likewise rose by 4.8 percent to P3.7 billion from P3.5 billion in the same quarter last year.
Its net income for the quarter stood at P231.9 million, an 11.3 percent increase. However, with the new PFRS 16, MGI said this would translate to a net income of P227.9 million, lower by P4.0 million.
From January to June, MGI opened a total of 28 new stores including six overseas. This brings the Company’s total store network to 711 branches, with 57 situated across various locations in North America, the Middle East, and Asia.
Aside from Max’s Restaurant, MGI owns 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.