Max’s Group Posts 34% Net Income Growth in Q2
Max’s Group, Inc. (“MGI,” “the Company”), the Philippines’ largest casual dining restaurant group, reported today a net income of P208.3 million for the second quarter of 2018, up 34% from P155.7 million for the same period last year.
For the quarter alone, systemwide sales grew by 11% at P4.9 billion from P4.4 billion, driven by robust same-store sales growth of 6% and healthy new store sales of 5%. Likewise, transaction count rose by 8% on the back of compelling marketing campaigns and tactical promotions.
This outcome was attributed to harnessing the power of the brands, value-driven product bundles and productivity measures across the enterprise. Moreover, normalized labor expenses, lower rental overhead and savings from utilities likewise contributed to margin improvement.
“We are determined to carry this momentum into the next quarter, fully aware of the headwinds on cost upcharges. Nevertheless, we are confident that our strategies will enable us to stay resilient amidst these conditions. We will also continue to aggressively pursue franchising opportunities in both existing and new markets while keeping focus on customer-centric activities to boost transaction volumes and rationalizing our cost structure,” shared Ariel P. Fermin, Group Chief Operating Officer.
For the first half of 2018, systemwide sales went up 12% to P9.3 billion from P8.3 billion for first half 2017, anchored on a solid same-store sales showing of 6%. Topline growth remained at double-digit, up 11% to P6.7 billion from P6.0 billion. Restaurant sales rose 11% to P5.6 billion from P5.0 billion propelled by the opening of 10 new company-owned and 11 franchised outlets coupled with an increase of 9% in transaction count, signifying sustained market share leadership. Commissary sales jumped 19% to P799.3 million from P674.0 million owing to a growing base of franchising operations. Online and delivery revenues gained 16% to P748.6 million from P643.7 million by reinforcing digital touch points to support seamless online and mobile ordering. After a seemingly cautious start to the year, the company recorded a net income of P332.0 million for first half 2018, implying a notable sequential rebound relative to its first quarter performance, to remain at similar year-to-date levels for the comparable period in 2017.
“The results underpin prior initiatives to reorganize ourselves and invest on building professional capabilities to spearhead long-term growth. We have effectively regrouped into various strategic functional teams, each with defined and uniformed objectives that promote cohesiveness and productive interactions within the group. This setup has allowed us to leverage and benefit from additional operational efficiencies across the business,” said Robert F. Trota, President and Chief Executive Officer of MGI.
From January to June 2018, MGI opened a total of 21 new stores including three overseas. This brings the Company’s total store network to 678 branches, with 54 situated across various locations in North America, the Middle East, and Asia.